Tariff issue with US may be resolved in 8-10 weeks: CEA Nageswaran
Chief Economic Advisor V Anantha Nageswaran on Thursday said India and the US are likely to reach a resolution on the penal tariffs imposed by Washington within the next two months, news agency PTI reported.
Speaking at an interactive session organised by the Bharat Chamber of Commerce in Kolkata, Nageswaran said, “Underneath the surface, conversations are going on between the two governments. My hunch is that in the next eight to ten weeks, we will likely see a solution to the penal tariff imposed by the US on Indian goods.”
The US imposed an additional 25 per cent tariff on Indian exports in August, taking the total levy to 50 per cent. President Donald Trump cited India’s continued purchase of Russian oil, despite US sanctions, as the reason for the additional tariffs.
The decision has hit Indian exports to the US, which is New Delhi’s largest trading partner in goods. Exports fell to $6.86 billion in August, down from $8.01 billion in July. Overall exports also slipped to a nine-month low of $35.10 billion in August from $37.24 billion in July.
Services trade provided some cushion in August. Exports of services were estimated at $34.06 billion, while imports stood at $17.45 billion, leaving an overall goods and services trade deficit of $9.88 billion in August.