US tariff impact to ease out in 1-2 quarters: CEA

THE CURRENT IMBROGLIO caused by the 50% additional US tariff on India is expected to ease out in one to two quarters, chief economic advisor V Anantha Nageswaran said at Emkay Confluence 2025 event here on Wednesday.

- FE BUREAU

"I don't think from a long-term picture, the impact (of US tariff on the Indian economy) will be that significant but in the short-term, there may be some impact," he added.

Last week, US President Donald Trump signed an executive order imposing an additional 25% levy on India for purchasing Russian oil, bringing the total extra tariff to 50%. While the initial 25% tariff came into effect on August 7, the additional 25% linked to India's imports of Russian oil is set to take effect on August 27.

In the meantime, India and the US haven't yet formally ended the negotiations for a bilateral trade agreement.