Lagatar24 Desk
New Delhi: Union Commerce Minister Piyush Goyal on Saturday said discussions with the United States on a trade deal were moving forward “in a very cordial atmosphere,” but refused to give a timeline for when India could expect relief from high US import tariffs imposed by President Donald Trump.
‘No Deal Unless National Interests Are Protected’
Addressing a press conference, Goyal said India would finalise the agreement only after safeguarding the interests of its farmers, fishermen, and MSME sector. “Free trade agreements are never deadline-based,” he remarked. “There is no agreement unless we fully address the interests of the nation… Talks are progressing very well, and we’ll inform you once we reach a decision,” he told reporters, as quoted by ANI.
Trump’s 50% Tariffs and Global Trade Shifts
US President Donald Trump has levied a 50% tariff on Indian imports — including an additional 25% over a “trade imbalance” and another 25% due to India’s continued purchase of Russian oil. The move follows Trump’s threat of 100% tariffs on Chinese tech exports amid rising tensions with Beijing over rare earth mineral controls. Analysts say this shift could accelerate a trade deal with India, potentially giving New Delhi tariff access in the 16–18% range, above the EU’s 15% but below Vietnam’s 20%, according to the Global Trade Research Initiative (GTRI).
Political Undertones and Negotiation Dynamics
Experts suggest Trump’s tough stance may have been influenced by Prime Minister Narendra Modi’s refusal to endorse Trump’s claim that he forced a Pakistan ceasefire during India’s Operation Sindoor. Despite Trump’s unpredictable approach, New Delhi has remained measured. GTRI observed that “a deal may move quickly because Washington wants it,” particularly as the US seeks to diversify its supply chains away from China.
India’s Red Lines and Ongoing Negotiations
An Indian delegation is currently in Washington for the sixth round of talks that resumed after an August pause. India continues to insist on protecting its “red lines” in agriculture, e-commerce, digital trade, and intellectual property, avoiding any clauses that could undermine its strategic autonomy. Foreign Minister S Jaishankar has reaffirmed these boundaries.
US Treasury Secretary Scott Bessent recently identified India as a key partner in the global “China versus the world” rare earths competition, with 80% of such minerals currently controlled by Beijing. Goyal’s ministry has also highlighted that around 45% of Indian exports to the US are already outside the tariff bracket.
