India's trade minister visits US amid looming tariff concerns
India’s Commerce and Industry Minister, Piyush Goyal, embarked on a trip to the United States on Monday to engage in trade discussions, according to two government officials. His visit comes just weeks ahead of the planned imposition of reciprocal tariffs by US President Donald Trump.
The visit was unexpected, with Goyal cancelling previously scheduled meetings that were planned through March 8, sources revealed.
Last month, during Indian Prime Minister Narendra Modi’s visit to the US, both nations committed to working on an initial phase of a trade agreement by fall 2025, with a broader goal of achieving $500 billion in bilateral trade by 2030.
Trump’s proposed reciprocal tariffs, set to take effect in early April, have raised concerns among Indian exporters in sectors ranging from automotive to agriculture. Analysts at Citi Research estimate that these tariffs could lead to potential losses of approximately $7 billion annually.
During his trip, Goyal aims to gain clarity on these tariffs and evaluate their impact on Indian trade, according to one government official. Discussions may also include possible trade concessions and an agreement that could lead to reduced tariffs and strengthened economic ties between the two nations.
India has expressed willingness to negotiate tariff reductions on industrial goods such as automobiles and chemicals but remains firm on maintaining tariffs on agricultural imports, citing the need to protect millions of small farmers, sources stated.
In an effort to ease trade tensions, India has already lowered tariffs on several products. For instance, tariffs on high-end motorcycles have been reduced from 50% to 30%, and duties on bourbon whiskey have dropped from 150% to 100%. Additionally, India has pledged to review other tariff structures, increase energy imports, and expand defense procurement from the US.
The United States remains India’s largest trading partner, with bilateral merchandise trade increasing by approximately 8% year-over-year to exceed $106 billion in the ten months leading up to January. India continues to maintain a trade surplus in its exchanges with the US.
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