Commerce Minister Piyush Goyal unexpectedly traveled to the United States on Monday for urgent discussions about trade. This trip comes just weeks before President Donald Trump plans to impose new tariffs that could affect Indian exports.
Goyal’s visit follows canceled meetings and comes after Prime Minister Narendra Modi’s recent trip to Washington, D.C. During that visit, India and the US agreed on a trade deal, aiming to boost bilateral trade to $500 billion by 2030.
Concerns About Trump’s Tariffs
Trump’s new tariffs, set to begin in early April, worry many Indian exporters, particularly those in industries like automobiles and agriculture. A report by Citi Research predicts India could lose up to $7 billion annually because of these tariffs.
During his trip, Goyal is looking for more information about these tariffs and their impact on India. He may also discuss possible concessions and ways to lower tariffs to improve trade between the two countries.
India is open to lowering tariffs on some industrial goods like cars and chemicals but is hesitant to reduce tariffs on agricultural products, which could hurt many farmers.
To ease trade tensions, India has already cut tariffs on certain items. For instance, taxes on high-end motorcycles have decreased from 50% to 30%, and tariffs on bourbon whiskey were reduced from 150% to 100%. India is also planning to boost its energy imports and buy more defense equipment from the US.
India’s trade with the US, its largest trading partner, has increased by 8% each year, reaching over $106 billion in the last ten months, resulting in a trade surplus for India. However, certain sectors like chemicals, metals, and food products could be hit hard by the possible new tariffs. If these tariffs are extended to more agricultural products, India could struggle with exports in areas like shrimp and dairy.