India-US Trade Deal: Goyal Says Focus on Best Terms

India is continuing trade discussions with the United States and is seeking the most favourable terms possible, Commerce and Industry Minister Piyush Goyal has said, as uncertainty persists over tariff measures announced by US President Donald Trump.

Speaking in New Delhi on Friday, Mr Goyal said the situation remained fluid following recent changes in Washington’s trade policy and a ruling by the Supreme Court of the United States that curtailed the president’s authority to impose sweeping tariffs.

Evolving Tariff Landscape

Earlier this year, President Donald Trump introduced a series of reciprocal tariffs on several countries, including India. In April 2025, the United States announced a 26% duty on certain Indian goods, which was later adjusted to 25%. An additional 25% levy was subsequently imposed, citing India’s continued purchases of Russian oil, taking the overall tariff burden to 50% on affected exports.

More recently, President Trump announced a temporary 10% tariff on goods from all countries, including India, and signalled that it could be increased to 15%, the maximum allowed under the statute he invoked.

However, the Supreme Court of the United States struck down the broader reciprocal tariff framework, weakening the administration’s legal basis for some of the measures. The ruling has introduced fresh uncertainty into trade negotiations with multiple countries.

Mr Goyal said India would take a cautious approach. “It’s an evolving situation,” he said, adding that Washington had “many tools” at its disposal and that policies could change further. “If the circumstances change, the deal will be rebalanced,” he said, referring to a joint understanding between the two countries.

Talks With Washington

Mr Goyal confirmed that India remains in dialogue with the United States on a proposed interim trade agreement. He said New Delhi would not set a deadline for concluding the pact and would ensure that India’s competitive interests were safeguarded.

He made the remarks after holding discussions in New Delhi with United States Secretary of Commerce Howard Lutnick, who was on a private visit to India. The meeting, according to officials, focused on strengthening economic and commercial ties.

A planned three-day round of negotiations in Washington was recently postponed after the United States recalibrated its tariff regime. The Indian delegation, which was to be led by senior negotiator Darpan Jain, is expected to resume talks once there is greater clarity on the tariff structure.

Under a previously agreed framework, the United States had indicated it would reduce the reciprocal tariff on India to 18% and remove the additional 25% punitive levy linked to Russian oil imports. That proposal followed earlier higher rates and was seen as a step towards stabilising trade relations.

Protecting Domestic Sectors

Addressing concerns from India’s agricultural sector, Mr Goyal said sensitive segments would remain protected under any agreement.

“No genetically modified foods will come into India,” he said, adding that dairy, maize, soybean and poultry sectors would be exempt from concessions in the proposed arrangement. He stressed that the interests of farmers and dairy producers had been preserved.

Mr Goyal also expressed confidence in India’s export performance despite global trade headwinds. He said exports were poised to grow this year and emphasised that international trade agreements were about securing competitive advantage.

Global Reactions and Implications

The shifting tariff policy in Washington has drawn varied responses internationally. China has urged the United States to withdraw tariff measures, while the European Union has paused certain trade decisions pending clarity. India has opted to delay formal negotiations until the legal and policy environment becomes more stable.

Trade between India and the United States has expanded significantly over the past decade, covering goods such as pharmaceuticals, information technology services, machinery and agricultural products. The United States is one of India’s largest trading partners.

The current discussions are aimed at an interim trade pact that could lay the groundwork for a broader agreement. Officials on both sides have described the process as complex, given domestic sensitivities and evolving global trade rules.

Context

Trade policy has been a central feature of President Trump’s economic agenda, with an emphasis on reciprocal tariffs designed to reduce trade deficits and encourage domestic manufacturing. However, legal challenges in the United States have complicated the implementation of some measures.

For India, balancing access to the American market with the protection of domestic industries is a key objective. The outcome of the negotiations could influence export competitiveness, investment flows and broader strategic ties between the two democracies.

Mr Goyal said India would continue to engage constructively while ensuring that national economic interests remain paramount. The next round of talks is expected once both governments assess the implications of recent legal and tariff developments.