India and the United States appear to be moving closer to a breakthrough in their long-running tariff dispute, with signals emerging that Washington could soon slash duties on Indian goods.
India’s Chief Economic Advisor V. Anant Nageshwaran said at an event that the US may withdraw the additional 25 per cent tariff on Indian products. He added that reciprocal duties imposed by Washington could also be reduced from the current 25 per cent to as low as 10–15 per cent. According to him, a decision could come “within the next few months, or even sooner.”
The optimism is backed by recent diplomatic developments. Just days ago, US President Donald Trump, who until recently accused India of funding the Ukraine war praised Prime Minister Narendra Modi’s support in seeking peace. Washington, which had earlier resisted talks, has since dispatched a trade delegation to Delhi and even dropped some demands related to the dairy sector.
In today’s DNA, Zee news Managing Editor Rahul Sinha analysed the US Tariffs against Indian goods.
Watch Today’s DNA Full Episode:
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‘Deadline’ of End of ‘Tariff War’ has arrived!
India .. will save Saudi if you kill PAK?Look #DNA With live rahul sinha#ZeeLive #Zenews #DNAWithRahulSinha @Rahulsinhatv https://t.co/YFzBJMAq7s– Zee News (@zenews) September 18, 2025
Analysts say the shift is driven by domestic political pressure in the US. American farmers are angry as tariffs triggered retaliatory actions from China, which began buying soybeans and corn from Brazil instead. Reports show that 216 US farms declared bankruptcy this year 55 per cent higher than last year. With farms averaging 500 acres, some as large as 10,000 acres, the losses have been devastating. Farmers in swing states, who traditionally back Trump and fund his party, are increasingly blaming him for their plight. Trump hopes India will buy more American corn to ease their anger ahead of the 2026 midterm elections.
Meanwhile, tariffs have also hurt US consumers. Seafood and spice prices have jumped 20 per cent, inflation has risen to 3 per cent against the Fed’s 2 per cent target, and each household is paying an estimated $1,300 extra annually. Goldman Sachs estimates consumers are bearing up to 70 per cent of tariff costs, a figure that could climb further.
With mounting pressure on both sides, expectations are high that a major tariff rollback is imminent.
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