Trade & tariffs: Solution to issues with US likely in eight to ten weeks, says CEA
Virendra Pandit
New Delhi: Chief Economic Advisor V. Anantha Nageswaran on Thursday said that India and the US are expected to solve the tariff issues in the next eight to ten weeks, the media reported.
Addressing an interactive session organised by Bharat Chamber of Commerce in Kolkata, he hinted at ongoing unofficial (Track II) efforts to reset bilateral relations. He 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 tariff imposed by the US on Indian goods.”
The additional 25 percent tariffs imposed by the US on Indian products for purchasing Russian crude came into effect in August, bringing the total levy on New Delhi to 50 percent. 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 India’s largest trading partner in goods. Exports fell to USD 6.86 billion in August, down from USD 8.01 billion in July. Overall exports also slipped to a nine-month low of USD 35.10 billion in August from USD 37.24 billion in July.
Services trade provided some cushion in August. Exports of services were estimated at USD 34.06 billion, while imports stood at USD 17.45 billion in August.
In recent weeks, India and the US administration have renewed dialogue over trade. Relations between President Trump and Prime Minister Narendra Modi also seem to be improving. On Wednesday, Trump dialled PM Modi on his 75th birthday, a gesture widely seen as an attempt to reset bilateral ties.
The call marked the first direct interaction between the two leaders since June, when PM Modi firmly rejected Trump’s attempt to take credit for a “ceasefire” between India and Pakistan. According to the western media, PM Modi even declined at least four phone calls from Trump during this period.
On Wednesday, the PM, however, responded to Trump’s birthday wishes on social media, stating: “Thank you, my friend, President Trump, for your phone call and warm greetings on my 75th birthday. Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights.”
A day before President Trump’s call to PM Modi, a US trade negotiating team arrived in New Delhi to resume trade talks, which both the sides described as “positive.”
In the next few weeks, the two sides are likely to take the trade talks to the next level, through physical and online meetings.
