Will see restructuring of trade routes: Piyush Goyal on Trump's tariffs

Speaking at Business Today's India@100 summit, Goyal said that India's exports are going to be higher than last year

Commerce Minister Piyush Goyal on Friday said US President Donal Trump’s tariffs will see restructuring of trade routes, however, it won’t necessarily lead to deglobalisation.

Speaking at Business Today's India@100 summit, Goyal said that India's exports are going to be higher than last year. He said India has converted every challenge into opportunity.

On August 6,Trump announced that the US will impose an additional 25% tariff on Indian goods as punishment for India’s purchases of Russian oil, taking the total to 50 per cent from August 27.

Trump claimed India's purchase of Russian oil was funding Moscow's invasion of Ukraine.

The additional 25% levies raised the total duty on Indian exports to 50% — among the highest of any US trading partner.

Trump imposed significant tariffs on various countries, including India, citing national security and foreign policy concerns.

Meanwhile, think tank Global Trade Research Initiative (GTRI) said on Wednesday that the tariffs announced by the US are expected to make Indian goods far costlier in the US, with the potential to cut America-bound exports by 40–50 per cent.

The White House said the measure responds to India's continued purchase of Russian oil.

The move places India among the "most heavily" taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh, and threatens most of India's USD 86.5 billion in annual exports to America, from textiles to machinery, GTRI Founder Ajay Srivastava said.

He said in 2024, China bought USD 62.6 billion of Russian oil, more than India's USD 52.7 billion, yet faces no such penalties.

Washington avoids targeting Beijing because of China's leverage over critical materials such as gallium, germanium, rare earths, and graphite, vital for US defence and technology, he said adding the US has also overlooked its allies' trade with Russia such as the EU which imported USD 39.1 billion of Russian goods last year, including USD 25.2 billion in oil.