A major breakthrough in U.S.-India trade relations could be on the horizon. India’s Chief Economic Adviser, V. Anantha Nageswaran, has revealed that the U.S. may reduce the punitive tariffs imposed on Indian exports. Currently, certain goods face a steep 25% duty, but talks between the two governments may see this lowered to around 10–15%.
This potential relief would mark a significant improvement in bilateral trade ties, which have been strained since the U.S. imposed high tariffs in 2018 on steel, aluminum, and other products. For India, a rollback of duties would provide a substantial boost to exporters, especially in metals, textiles, and pharmaceuticals, where the U.S. is a key market.
Industry experts believe tariff reduction will enhance competitiveness, boost export volumes, and create new opportunities for Indian manufacturers. It will also align with India’s ongoing efforts to expand its global trade footprint through initiatives like “Make in India” and Production Linked Incentive (PLI) schemes.
The development is being closely watched by industry bodies, as it may significantly improve India’s export outlook for FY26 and beyond. It also strengthens the broader strategic partnership between the world’s two largest democracies at a time of shifting global trade alliances.
If implemented, tariff relief could not only ease costs for Indian companies but also provide U.S. buyers with more affordable goods, creating a win-win for both economies.