New Delhi: In a ray of optimism for the bilateral ties, India's Chief Economic Advisor (CEA) V Anantha Nageswaran has said that a solution to the India-US tariff issues is likely to be arrived at in the next couple of months.
Addressing a session organized by the Bharat Chamber of Commerce in Kolkata, Nageswaran said that conversations are already going on between the two governments to end the deadlock. “My hunch is that in the next eight to 10 weeks, we will likely see a solution to the penal tariff imposed by the US on Indian goods,” he told the gathering.
Nageswaran indicated that the India-US talks are underway to also reduce the reciprocal tariffs from 25 per cent to about 15 per cent. The additional 25 per cent tariff on Indian imports came into effect from August 27, owing to New Delhi purchasing Russian oil -- taking the total tariffs on the Indian goods entering the US to 50 per cent.
India and the US have decided to intensify efforts to achieve an early conclusion of a mutually beneficial trade agreement (BTA). A team of officials from the office of the United States Trade Representative, led by Chief Negotiator for India-US Bilateral Trade Agreement negotiations, Brendan Lynch, came to India this week. They held discussions on India-US trade ties, including the India-US Bilateral Trade Agreement, with a team of Indian officials, led by Special Secretary, Commerce, Rajesh Agrawal.
Lynch's visit came as expectations of a trade deal were boosted by positive messages from Trump and PM Modi. In their first phone conversation in months, US President Donald Trump called Prime Minister Narendra Modi to extend greetings on his 75th birthday.
Prime Minister Modi, in a post on X, called Trump his “friend” and thanked him for the wishes. “Thank you, my friend, President Trump, for your phone call and warm greetings on my 75th birthday. Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights. We support your initiatives towards a peaceful resolution of the Ukraine conflict,” PM Modi wrote.
EU says it needs deals with India
Meanwhile, the European Union must look to trade deals with countries like India to reduce dependencies, with higher US import tariffs pushing the bloc to diversify its ties, European Commission President Ursula von der Leyen has said.
“We want to make a deal with India this year,” von der Leyen said at a conference with German business leaders. “We are also in talks with South Africa, Malaysia, the United Arab Emirates, and others,” she added.
