India, US still in dialogue on bilateral trade deal, says Piyush Goyal amid Trump tariff row

Commerce and Industry Minister Piyush Goyal on Tuesday (September 2) said that India was negotiating a bilateral trade agreement with the US. His comments come at a time when bilateral relations between India and the US have nosedived following US President Donald Trump’s decision to impose 50 per cent tariffs on India, out of which 25 per cent are reciprocal tariffs and the remaining are retaliatory tariffs for India’s purchase of Russian oil, which Washington has claimed was funding Moscow’s war in Ukraine.

"We are in dialogue with the US for a BTA," he said here at an industry chamber event on sustainability. India and the US are in the process of negotiating the pact since March, and so far, five rounds of talks have been held.

However, the US team has deferred its visit to India for the next round of talks, which was scheduled from August 25, after the Trump administration imposed 50 per cent tariffs on Indian goods.

Also Read: India will never bow down, says Piyush Goyal on US tariffs

Dig at US tariffs

Goyal, in an apparent dig at the US, also said that it was unfortunate that “certain important countries” have chosen to forego the agenda of sustainability.

"It is unfortunate that certain important players, certain important countries, have chosen to forego the agenda of sustainability...India continues to remain committed to our sustainability goals. We believe our competitiveness will only get better with a sustainable pathway,” said Goyal as quoted by ANI.

"Today, we have a situation in India, where we can offer 24-hour renewable energy at roughly Rs 4.60-Rs 5 per kilowatt power. I dare say there is no comparable power at this price available anywhere in the world,” he added.

Also Read: PM Modi hails 7.8 per cent GDP growth, takes swipe at Trump’s tariffs

‘India won’t bow down’

The Union Minister’s comments come days after he declared that India will neither "bow down nor become weak" in response to US President Donald Trump's decision to impose a 50 per cent tariff on Indian goods.

Speaking at an event in Delhi, Goyal emphasised India's readiness to pursue beneficial free-trade agreements while maintaining national self-respect. He assured that India would explore new markets and predicted that current year exports would surpass last year's figures, demonstrating confidence despite trade tensions.

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India’s export performance

India's exports reached an all-time high of USD 824.9 billion last fiscal, representing 6.01 per cent growth over the previous year's USD 778.1 billion. Goyal dismissed pessimistic analyst predictions, arguing that as an "import-dependent economy," reduced US exports would minimally impact India.

He highlighted India's resilience during past challenges, stating that if the country managed the COVID pandemic and nuclear sanctions, a potential 2 per cent GDP impact with only 40 per cent of items covered shouldn't cause concern.

(With agency inputs)