Will India hit back at US with retaliatory tariffs? Piyush Goyal says India is a ‘patient’ nation

Dismissing speculation about retaliatory tariffs against Washington, Union Commerce Minister Piyush Goyal emphasised India’s commitment to diplomacy.

“I believe in dialogue, diplomacy,” he told CNN-News18 Editor-in-Chief Rahul Joshi, stressing that New Delhi prefers to strengthen ties rather than escalate tensions.

Responding to pointed comments from US officials over India’s purchase of Russian oil, Goyal downplayed their impact. “I think there are some misunderstandings or some personal opinions. I don’t think that deters India and the US from continuing to maintain a strategic partnership,” he said.

Optimism on trade pact

Goyal also struck an optimistic note on trade negotiations, indicating progress toward a bilateral pact. “We will continue to work towards finding solutions and aim to reach an outcome within a few months,” he said. According to him, the current situation is temporary and will not derail long-term cooperation.

‘One of the most consequential relationships’

Underlining the broader significance of New Delhi’s ties with Washington, Goyal called the India-US relationship “one of the most consequential” today. He described both nations as “friends and allies,” acknowledging challenges but reiterating confidence that ties would only strengthen.

Trump allies defend tariffs on India

Several figures close to US President Donald Trump have strongly defended the steep 50 per cent tariffs imposed on Indian imports, framing them as both an economic and geopolitical necessity. White House trade adviser Peter Navarro has been the most vocal, claiming that “The road to peace runs in part through New Delhi” in seeking to justify tariffs as leverage to curb India’s oil trade with Moscow.

Navarro calls India ‘maharaja of tariffs’

Navarro even labelled India the “maharaja of tariffs,” pointing to its traditionally high import duties as a reason for Washington’s hard line. Others, like Senator Lindsey Graham, have endorsed the measures as a way to pressure Russia by targeting its biggest customers, while USTR official Jamieson Greer has presented the tariffs as part of a broader strategy to revive US manufacturing.

Impact on Indian exports

The United States, under President Trump, has imposed steep 50 per cent tariffs on Indian imports—comprising a base 25 per cent tariff and an additional 25 per cent surcharge tied to India’s purchase of discounted Russian oil. Indian exporters now face some of the highest duties seen in recent years, threatening nearly $48 billion in exports.

India’s response with GST cuts

In response, India is cutting its Goods and Services Tax (GST) on hundreds of consumer goods—from air conditioners to small cars—effective September 22, ahead of Diwali, to boost local demand.