**India and US May Soon Resolve Trade Tensions Over High Import Tariffs**
*New Delhi:* India and the United States have been grappling with trade issues due to high import taxes (tariffs) imposed by both countries. However, there is promising news on the horizon. India’s Chief Economic Advisor, V. Anantha Nageswaran, has indicated that the US may soon remove the additional 25 percent tariff on Indian products.
**What Did the Chief Economic Advisor Say?**
On 18th September, Nageswaran stated, “That 25 percent penalty tariff was put due to political reasons. But looking at recent events, I believe this extra tax will not stay after 30th November.”
He added, “I don’t have solid proof, but it is my guess. Both countries are trying to reduce trade tensions.” He also revealed that US trade officials had recently visited India, signaling renewed engagement between the two nations.
**How Much Tariff Will Remain Then?**
Previously, the US had imposed a 25 percent tax on Indian goods. Subsequently, due to India purchasing oil from Russia, the US added another 25 percent tariff, bringing the total tax on Indian products to 50 percent.
If the US removes this penalty tariff, the tax on Indian goods will revert to 25 percent. Furthermore, if India responds by lowering its own import taxes, the overall tariffs could decrease to a more manageable 10-15 percent.
**Talks Between India and the US Have Restarted**
Trade negotiations between India and the US had stalled for some time, with little progress. However, talks have now resumed. US officials recently visited Delhi to meet with Indian leaders. The discussions were reported to be positive, raising hopes among experts that a trade deal and tariff reductions may be finalized soon.
This development marks a significant step toward resolving long-standing trade disputes and fostering stronger economic ties between India and the United States.
https://www.freepressjournal.in/business/trumps-tariff-move-may-soon-backfire-big-hint-that-india-us-trade-tension-could-ease-soon
