Chicago, Illinois, USA: India and the United States engaged in “constructive” and “future-oriented” trade talks on September 16, raising optimism about a breakthrough in tariff issues.
According to India’s Chief Economic Adviser V. Anantha Nageswaran, the U.S. may soon withdraw the additional import duty on Indian products and lower the retaliatory tariff from 25% to around 10–15%. He made these remarks on September 18 while speaking at an event in Kolkata.
“I am personally confident that within the coming months, if not sooner, there will be a settlement on the 25% extra duty,” Nageswaran said. “It is also quite possible that the reciprocal tariff could be reduced to a range of 10% to 15%, which is in line with earlier expectations.”
The fresh optimism follows high-level talks between India and the U.S. on September 16. New Delhi described the discussions as “positive,” offering hope after tensions escalated when former U.S. President Donald Trump imposed steep tariffs on India in response to its purchase of Russian oil.
On August 27, Trump had enforced an additional 25% duty on Indian imports, effectively doubling the overall tariff rate to 50%. The move was part of Washington’s wider strategy to increase pressure on Moscow following its invasion of Ukraine.
Trump and Indian Prime Minister Narendra Modi also held a phone call on September 16. During the conversation, Trump said he appreciated Modi’s efforts toward ending the Russia-Ukraine conflict, although neither leader shared specific details about any agreement on the matter. The interaction, however, was seen as a signal of improving relations between the two countries, which had been strained in recent months despite their shared concerns over China.
Trump has also recently adopted a softer tone, hinting that both nations could soon finalize a trade agreement.
Following Nageswaran’s statement on possible tariff relief, Indian equity markets reacted positively. The benchmark Nifty 50 index advanced to its highest level since July 9, closing at a one-week high.
