Resolution to US tariff issues likely in couple of mths: CEA

A phone call from US President Donald Trump to convey birthday greetings to Prime Minister Narendra Modi also indicated a move towards normalisation of relations.

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Speaking at a separate event organised by the Bharat Chamber of Commerce, the CEA said the 25 per cent reciprocal tariff could also come down to the earlier-anticipated range of 10-15 per cent. “If that happens, it will be an even bigger occasion for celebration,” he added.

Exports to the US, which stood at $86.5 billion last year, suffered a jolt when the Trump administration imposed an additional 25 per cent tariff on Indian goods effective August 27, in retaliation to India’s Russian oil purchases. This was over and above the 25 per cent reciprocal tariff that kicked in on August 7.

A resolution to the matter, Nageswaran said, was important not only from a trade perspective but also from the overall sentiment and capital formation. Underneath the surface, lots of conversations were going on, he said.

Confidence on growth momentum