The latest on pending India-US trade deal – Commerce and Industry Minister Piyush Goyal said India is in a wait-and-watch mode after the US Supreme Court ruling on US tariffs, describing the situation as evolving
Goyal said India is closely monitoring developments while continuing dialogue with the administration of US President Donald Trump.
Prior to the ruling, both countries had agreed on a framework for Washington to cut tariffs on India to 18 per cent from 50 per cent – a rate that previously included a 25% punitive tariff on India’s Russian oil purchases.
“This is an evolving situation. We are watching what is happening. We are in dialogue with the administration in the US and, of course, internal consultations. We will have to wait and watch and ensure the best interests of India are protected,” Goyal said.
Securing best possible deal for India: Goyal
Goyal said that the opportunities negotiated with the United States were aimed at securing the best possible deal for India, enhancing its competitive advantage over other emerging economies and developing nations, and opening doors to greater engagement in areas of national interest.
He said that at a 50 per cent tariff, India faced a significant disadvantage in exports, and bringing it down to a level below competitors’ was a big win for India.
India has delayed plans to send a trade delegation to Washington last week, after the US Supreme Court struck down the tariffs.
“Trade deal or international trade is about comparative advantage,” he said. “If everybody is at X rate, nobody gets a competitive advantage. But if I am lower than somebody else who is my competitor, I have a comparative advantage.”
Trump warns against backing away
Earlier this week, Trump warned countries against backing away from recently negotiated trade deals with the US after the Supreme Court struck down his emergency tariffs and weakened his legal authority to impose sweeping global tariffs.
Since the order, Trump has announced a temporary 10 per cent duty on all nations, including India, and promised to raise it to 15 per cent – the maximum allowed under the statute he has resorted to.
The path forward for Trump’s foreign trade deals remained uncertain, with China urging Washington to scrap tariff measures, the EU freeze on its approval and India delaying planned talks.
Goyal said he would not put a timeline on completing trade deals. New Delhi and Washington had previously planned to sign a legal agreement in March.