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Chief Economic Adviser V Anantha Nageswaran shared positive thoughts on Thursday regarding the possibility of lifting the additional tax imposed on specific imports after November 30, suggesting a possible relaxation of trade limits during ongoing economic talks. At an event held by the Merchants' Chamber of Commerce & Industry in Kolkata, the CEA stated, "Our team is actively working, and I will take a moment to address the tariff issue. The initial 25 percent tax and the extra 25 percent tax were unexpected. I still think the global situation might have caused the second 25 percent tax, but given recent events over the past few weeks, I strongly feel and have no specific evidence to confirm this, but it’s my gut feeling that the extra tax will be eliminated after November 30." "I believe there will be a solution to the extra tax in the coming months, and hopefully, for the initial tariffs as well," he added, referring to the ongoing discussions between India and the United States.

He mentioned that India's export growth, which is currently at USD 850 billion every year, is expected to hit USD 1 trillion, making up 25 percent of the country's GDP, which shows a strong and open economy. Trump had used the International Emergency Economic Powers Act, a law from 1977 designed for managing financial controls during foreign emergencies, to enforce reciprocal taxes on many nations. India was subjected to a 25 percent tax, which was subsequently raised to 50 percent. The higher tariffs apply to all Indian goods entering the US market or being taken from warehouses for use. Consequently, the 50 percent tax on Indian imports to the US is now in force. The notification from US Customs also mentioned that, while most goods from India will face these higher taxes along with any other fees like antidumping or countervailing duties, some products are not included. Certain items explicitly mentioned in the US tariff schedule will not be subject to the extra duty. This includes products made from iron and steel, along with some of their derivatives, which will not incur the additional tax. The same exemption applies to aluminium items and their derivatives.

Passenger cars like sedans, SUVs, crossovers, minivans, cargo vans, and light trucks are also not included, along with their spare parts. Moreover, semi-finished copper products and certain intensive copper derivatives are excluded from the increased taxes. In summary, while the 50 percent tariff generally affects Indian imports, essential categories like iron, steel, aluminium, vehicles, parts, and copper products are excluded from this regulation. According to a report by the Global Trade Research Initiative, around 30.2 percent of India's exports to the United States, amounting to USD 27.6 billion, will still enter the US market without any duties, even with the new higher tariffs in place.