India Prioritizes National Interest in Trade Negotiations with the US
India's Stance on Trade Deals
Union Commerce Minister Piyush Goyal stated on Friday that India does not engage in trade agreements under time constraints, amidst ongoing discussions with the United States. He emphasized that trade deals are only pursued when they are thoroughly finalized and align with national interests.
While speaking to reporters in New Delhi, Goyal mentioned that India is also negotiating trade agreements with various nations, including the European Union, New Zealand, Oman, Chile, and Peru.
He highlighted that free trade agreements should be mutually beneficial, stating, "It should be a win-win agreement. If a favorable deal can be reached while safeguarding Indian interests, India is open to agreements with developed nations."
Current Trade Negotiations
As India's trade delegation returns from the US, Commerce Minister Piyush Goyal emphasised, "India never negotiates trade deals with a deadline." Despite continued discussions, key differences persist, particularly over agriculture & dairy access, though both sides remain hopeful… pic.twitter.com/4AQlASlish
— CNBC-TV18 (@CNBCTV18News) July 4, 2025
Goyal's comments come as India and the US are in the midst of negotiations for a trade deal, coinciding with a 90-day suspension of tariffs initiated by US President Donald Trump, which is set to conclude on July 9. The White House indicated on June 30 that the agreement was nearing completion and would be announced shortly.
In response to Goyal's remarks, Congress leader Rahul Gandhi criticized the government, asserting that Prime Minister Modi would ultimately concede to the Trump tariff deadline.
Tariff Concerns and Retaliatory Measures
Piyush Goyal can beat his chest all he wants, mark my words, Modi will meekly bow to the Trump tariff deadline. pic.twitter.com/t2HM42KrSi
— Rahul Gandhi (@RahulGandhi) July 5, 2025
Trump's reciprocal tariffs, which included a 26% levy on India, were implemented on April 9. However, shortly after, Trump reduced the rates on imports from most countries to 10% for a period of 90 days to facilitate trade negotiations.
The US president has consistently expressed his intention to impose a reciprocal tax on India and other nations, citing the high tariffs these countries impose on American goods. These tariffs have raised concerns about a potential trade war that could adversely affect the global economy.
On Friday, New Delhi proposed retaliatory tariffs against the US under World Trade Organization regulations in response to Washington's safeguard duties on automobile imports from India. India has informed the WTO's Council for Trade in Goods about its intention to suspend concessions and other obligations under WTO rules.
This proposal follows the US's decision on March 26 to impose a 25% tariff on imports of passenger vehicles, light trucks, and certain automobile parts from India, which was set to take effect on May 3.