Commerce minister Piyush Goyal leaves for sudden US visit as Trump tariffs loom

Commerce minister Piyush Goyal leaves for sudden US visit as Trump tariffs loom

Commerce minister Piyush Goyal leaves for sudden US visit as Trump tariffs loom ByHT News Desk Mar 03, 2025 12:15 PM IST Share Via Copy Link The unexpected visit follows the cancellation of previously scheduled meetings, with Piyush Goyal’s itinerary now clear until March 8.

Commerce minister Piyush Goyal made a sudden departure for the United States on Monday, reportedly to hold urgent trade discussions, just weeks before President Donald Trump’s planned reciprocal tariffs are set to take effect.

India's commerce minister Piyush Goyal (REUTERS)

The unexpected visit follows the cancellation of previously scheduled meetings, with Piyush Goyal’s itinerary now clear until March 8, according to government sources cited in a Bloomberg report.

The Minister of Commerce and Industry, which Piyush Goyal heads, did not immediately comment on the trip, which comes weeks after Prime Minister Narendra Modi’s visit to Washington DC. During that visit, India and the US pledged to the first phase of a trade agreement aimed at reaching $500 billion in bilateral trade by 2030.

Donald Trump’s proposal to impose reciprocal tariffs starting in early April has sparked concerns among Indian exporters, particularly in sectors ranging from automobiles to agriculture.

Citi Research analysts estimate that such tariffs could result in annual losses of up to $7 billion for India, according to the Bloomberg report.

Piyush Goyal’s visit is focused on seeking clarity about the proposed tariffs and assessing their potential impact on India, the report mentioned, adding that will also explore the possibility of offering concessions and discuss a trade deal designed to reduce tariffs and enhance bilateral trade.

India is open to negotiating tariff cuts on industrial goods like automobiles and chemicals but is resisting pressure to lower tariffs on agricultural products, fearing negative consequences for millions of farmers, the above-mentioned sources said.

To douse trade tensions, India has already made moves to lower tariffs on select items. For example, tariffs on high-end motorcycles have been reduced from 50 per cent to 30 per cent, and bourbon whiskey tariffs have been slashed from 150 per cent to 100 per cent. India has also promised to review other tariffs, increase energy imports, and purchase more defense equipment from the US

India’s merchandise trade with the US, its largest trading partner, has grown by eight per cent year-on-year, reaching over $106 billion in the ten months through January, with India maintaining a trade surplus. However, sectors such as chemicals, metals, jewelry, and food products are considered most vulnerable to the potential US tariffs, the Bloomberg report said.

If the US extends these reciprocal tariffs to a broader range of agricultural goods, India’s food and agricultural exports, such as shrimp and dairy, could face severe setbacks. A report by the Global Trade Research Initiative (GTRI) highlights that tariff differentials on these products could reach nearly 40 per cent.