Indian Trade Minister Departs To US, Discusses Planned Global Tariffs For Trump's Policy

JAKARTA - Indian Trade Minister Piyush Goyal began his trip to the United States on Monday to continue trading negotiations. Goyal will discuss President Donald Trump's reciprocal tariff plan.

As reported by Reuters on Monday, March 3, Goyal's visit came suddenly, as he departed after canceling the previously scheduled meeting until March 8, officials said.

During Prime Minister Narendra Modi's visit to the US last month, the two countries agreed to work on the first part of a trade agreement in the fall of 2025, aiming for bilateral trade worth $500 billion by 2030.

Trump's proposal to impose reciprocal rates from early April on his trading partners including India is concerned about Indian exporters in various sectors, from automotive to agriculture, with Citi Research analysts estimating a potential loss of around $7 billion per year.

During the visit, Goyal will seek clarity on US reciprocal rates to assess its impact on India, said one government source, and may also discuss India's potential concessions and trade deals to reduce tariffs and increase bilateral trade.

India is open to discussing cutting tariffs on industrial products, including cars and chemicals, but is pushing pressure to lower tariffs on agricultural products, arguing it will have an impact on millions of poor farmers, sources said.

To ease trade tensions, India has cut tariffs on some items, for example high-end motorcycle rates to 30% from 50% and whiskey to 100% from 150%, while pledging to review other fares, increase energy imports and buy more defense equipment.

India's trade in merchandise with the United States, its largest trading partner, has increased by about 8% year-on-year to more than $106 billion in ten months through January, with India maintaining a trade surplus.

Analysts say chemicals, metal products, and jewelry followed by cars, medicines, and food products are the sector most vulnerable to potential US reciprocal rates.

If the United States expands the reciprocal rate to broader agricultural products, Indian agricultural and food exports, including shrimp and milk, the difference in tariffs to nearly 40% will be the most affected, according to a report from the Global Trade Research Initiative (GTRI), Delhi-based think tank.