Tariff Dispute With US Could Be Resolved in Two Months, Says India’s CEA Nageswaran

US Tariff Row Likely to Be Settled in 2 Months: CEA Nageswaran.

Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said the dispute over additional 25% US tariffs on Indian goods could be resolved in the next two months, with talks currently underway between the two countries.

“I don’t have any inside information, but expect a resolution in 8–10 weeks. Conversations are ongoing between the governments of India and the US,” Nageswaran said at an event in Kolkata. He indicated that India’s reciprocal tariffs might be lowered to “somewhere between 10% and 15%.”

On September 16, trade negotiators of both nations resumed discussions on a proposed Bilateral Trade Agreement (BTA). The talks were led by Brendan Lynch, US Assistant Trade Representative for South and Central Asia, and Rajesh Agrawal, Special Secretary in India’s Commerce Department.

This marks the first high-level US trade visit since Washington imposed steep duties on Indian exports—25% plus an additional 25% penalty—over New Delhi’s purchases of Russian crude oil. The combined 50% tariff has hit key sectors including textiles, gems and jewellery, footwear, and chemicals.

The BTA, first initiated in February, was expected to see its first phase concluded by fall 2025. Five rounds of negotiations have taken place so far, while the sixth round, scheduled for late August, was postponed after the tariff hike.

Despite heightened trade tensions, Prime Minister Narendra Modi recently welcomed US President Donald Trump’s positive comments on bilateral ties, raising hopes of a breakthrough.