India&ndash;US trade relations may see relief soon, with Washington expected to withdraw the additional penal tariffs on Indian imports after November 30.
The United States had earlier imposed an extra 25% duty on Indian goods, in addition to the existing 25% reciprocal tariff, raising the total burden to 50%. The move was linked to India&rsquo;s continued oil trade with Russia under the Trump administration.
The additional duties came into effect on August 27, but diplomatic discussions have since created optimism for a resolution within weeks. Recent exchanges between New Delhi and Washington suggest a shift towards restoring smoother trade flows.
Meanwhile, legal challenges in the US have questioned the basis of the tariffs. A federal appeals court recently ruled that former President Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing such duties. The case is now pending before the US Supreme Court, with a hearing scheduled in early November.
If the penal tariff is withdrawn, Indian businesses could see lower trade barriers and improved access to the US market, signalling a positive turn in bilateral economic ties.

Tariff tensions ease as US likely to withdraw additional 25% duty on Indian imports soon

US May End Penal Tariffs on India by Nov 30

Tariff tensions ease as US likely to withdraw additional 25% duty on Indian imports soon

September 18, 2025 | 15:49 IST