Chief Economic Adviser (CEA) V Anantha Nageswaran expressed hope that the penal tariff on certain imports will expected to removed after November 30 by US. It shows a possible reduction in trade restrictions amid ongoing economic talks.
Speaking at an event organized by the Merchants’ Chamber of Commerce & Industry in Kolkata, the CEA said, “All of us are already at work, and I will take some time to discuss the tariff here. Yes, the original reciprocal tariff of 25 % plus the penal tariff of 25 % both not expected.
US may removed 25% extra Tariffs on India
I still think that geopolitical situations may have led to the second 25 % tariff, but given recent developments over the last weeks, I believe, and I don’t have any specific reason to say other than my intuition, that the penal tariff will not be around after November 30.”
“I think there will be a resolution in the next months regarding the penal tariff and hopefully the reciprocal tariffs,” he mentioned, noting the ongoing discussions between India and the US.
He added that India’s export growth, currently at USD 850 billion annually, set to reach USD 1 trillion, which would account for 25 % of GDP, showing a strong and open economy.
Trump follow the 1977 law to impose tariffs
Trump invoked the International Emergency Economic Powers Act (IEEPA), a 1977 law designed for sanctions and financial controls during foreign emergencies, to impose reciprocal tariffs on many countries. India faced a 25 % tariff, which later raised to 50 %.
The higher duties apply to all Indian products that are imported for consumption in the US or taken from warehouses for consumption. As a result, the 50 % tariffs on India’s imports to the US are now in place.
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