Goyal calls US–India ties ‘most consequential’, says tariff tensions will pass

Piyush Goyal

India and the US will keep talking to resolve their trade stand-off even as Washington’s total tariff on Indian goods rose to 50 percent from last month, Commerce Minister Piyush Goyal said, calling the relationship “the most consequential” in the world today.

“I am seeing this only as one more situation like India, and the US had a certain blip, like during the nuclear test of 1998, when they imposed sanctions on India. This will also pass as and when there is a deeper understanding of the situation,” Goyal told Network18 Managing Director and Group Editor-in-Chief Rahul Joshi in an interview amid the tariff turmoil. He added that New Delhi “has always believed in dialogue, diplomacy and an effort to strengthen rather than weaken relationships.”

The two sides, Goyal said, “will continue to be friends and engage,” describing the partnership as multidimensional.

Goyal hinted that the current political temperature will not derail a longer-term push to deepen trade and investment ties, even if exporters must navigate a difficult few months.

He said work on a trade pact with the US is ongoing. After Prime Minister Narendra Modi met President Donald Trump in February, the two teams were tasked with completing the first tranche of a bilateral trade pact by the fall of 2025, he said.

The two nations opened talks for the proposed trade deal in March and have conducted five rounds of negotiations, with the last one held in July in the US.

But, following Trump's decision to double tariffs on India, the next round of trade talks slated for August 25 in New Delhi, was deferred.

The US's recent tariff move has left parts of India’s export basket exposed, though some key categories are insulated for now. Pharmaceuticals, petroleum and electronics are currently exempt from the steeper duty, covering roughly $28 billion of India’s $86.51 billion in shipments to the US in FY25. Other sectors face higher costs and potential delivery disruptions as buyers reconsider orders or seek price relief.

Even as he emphasised engagement, Goyal drew clear red lines for any talks. “We will never compromise on the interest of our farmers, fishermen, MSMEs or our religious sentiments,” he said, a signal that India’s sensitivities on agriculture, dairy and small-business protection will remain central in negotiations.

For now, India is working on a relief package for exporters to cushion the tariff shock.