WASHINGTON (Diya TV) — Indian Commerce and Industry Minister Piyush Goyal made an impromptu trip to the United States on Monday to discuss key trade talks, before President Donald Trump’s upcoming reciprocal tariffs scheduled to begin in early April.
The suddenness of Goyal’s visit, resulting in the postponement of previously planned meetings in India, is an indication of the gravity of the situation. Goyal, during his visit, is to meet with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick in an attempt to clarify the impending tariffs and explore possible means to soften their effect on India’s export industries.
The Trump administration’s plan seeks to impose retaliatory tariffs on countries that have higher tariffs on U.S. products. For example, while the U.S. imposes an average Most Favored Nation (MFN) tariff of 5% on agricultural products, India has an average MFN tariff of 39%. Moreover, India charges a 100% tariff on U.S. motorcycles, whereas the U.S. charges 2.4% on Indian motorcycles.
Analysts calculate that these counter-tariffs would cost India around $7 billion a year, impacting everything from automobiles to agriculture. India has already lowered tariffs on some U.S. products, including cutting duties on expensive motorcycles from 50% to 30% and on bourbon whiskey from 150% to 100%. India’s government has also promised to review other tariffs, boost energy imports, and buy additional defense equipment to soften trade tensions.
Even with these concessions, India is reluctant to reduce tariffs on farm products, arguing that this could hurt millions of its farmers. India has also been asked by the World Bank to cut import tariffs and adopt regulatory reforms to open foreign investment, commenting that high tariffs on intermediate and capital goods raise trade costs and lower openness to exports and imports.
On Indian Prime Minister Narendra Modi’s recent visit to Washington, the two countries agreed to increase their bilateral trade by more than twice to $500 billion by 2030 and conclude the first phase of a multi-sector Bilateral Trade Agreement by fall 2025. Goyal’s ongoing visit seeks to take forward this pledge by resolving the current issues concerning the upcoming tariffs and considering possible concessions to enhance bilateral trade.
With the deadline for the imposition of the tit-for-tat tariffs nearing, the results of Goyal’s talks in Washington will be the game-changer that determines the course of India-U.S. trade relations in the future.
