Tariff relief likely: US may roll back Trump’s 25% duty on Indian goods after November

Indians may soon have reason to cheer on the trade front, as the additional 25% tariff imposed by the United States on Indian imports could be rolled back after November 30. Chief Economic Adviser (CEA) V. Anantha Nageswaran expressed confidence that the duties, introduced in August by President Donald Trump, are temporary and likely to be withdrawn within the next two months.

The Trump administration had announced the extra duty in August, on top of an earlier 25% reciprocal tariff, pushing the total burden on many Indian exports to nearly 50%. Washington justified the move as retaliation for India’s continued oil purchases from Russia, though experts argue the decision was more about geopolitical posturing than trade economics.

Despite the shock to exporters, optimism is building in New Delhi. Nageswaran noted that “recent developments suggest that the penal tariff will not be there after November 30,” hinting that talks between both governments are quietly progressing. Officials say the mood has shifted positively since late August, especially following renewed dialogue between Prime Minister Narendra Modi and President Trump.

Meanwhile, Trump’s tariff order has hit legal roadblocks in the US itself. The Appeals Court recently ruled that the President had exceeded his powers by imposing duties under the International Emergency Economic Powers Act (IEEPA), a law that does not explicitly authorize tariffs or taxes. With the Supreme Court scheduled to take up the case in early November, legal experts believe Washington could be forced to soften its stance toward India.

The broader picture, however, looks promising. Despite disagreements over Russia and other issues, both India and the US have shown a willingness to repair trade frictions and preserve their strategic partnership. For India, removal of the additional duty would ease pressure on exporters and reaffirm growing economic and political ties with Washington.

While challenges remain, there is strong hope that by December the 25% penalty tariff will be history, paving the way for a fresh chapter of opportunity in Indo-US relations.