India is holding talks with the US on a bilateral trade deal, Trade Minister Piyush Goyal said on Tuesday. His statement comes just days after Washington doubled tariffs on Indian goods in response to New Delhi’s continued purchases of Russian oil.
"We are in dialogue with the US for a BTA," Goyal said at an industry chamber event in New Delhi.
Goyal said India is also getting new trading arrangements with countries such as European Union, Chile, Peru, New Zealand, Australia, Oman and has already concluded deals with EFTA bloc, UK, UAE.
"Lots have happened and lots more to go," Goyal said, adding that India is a provider of 18% of global growth.
The Economic Times had reported on August 28 citing unnamed officials that India is hopeful of resuming negotiations with the US on the proposed bilateral trade agreement (BTA) and resolving the issue relating to the steep 50% tariffs on Indian goods will be key to striking the deal. Bloomberg also said citing officials that India and the United States are keeping informal talks going, and New Delhi has no immediate plans to respond to US President Donald Trump’s 50% tariffs on the country.
Indian exporters are facing one of the toughest trade shocks in years as the United States on August 27 imposed an additional 25% tariff on key goods from India, adding to an existing 25% duty and bringing the total US levy to 50%. The move is linked to India’s continued purchases of Russian oil and defence equipment. White House trade adviser Peter Navarro and US Treasury Secretary Scott Bessent have accused India of indirectly funding Russia’s war in Ukraine through its oil imports.
This came while India and US have been engaged in trade pact talks for months. The sixth round of talks for the BTA was set for August 25 in New Delhi, but the US delegation cancelled their visit. Both sides are aiming to finish the first phase of talks by this autumn. The trade deal is meant to more than double bilateral trade to $500 billion by 2030 from the current $191 billion.
"We have not finalised the new dates because of the overhang of this (50%) additional tariff. It was not practical to have official level discussions on the entire BTA (because of these high tariffs). We hope that we will get back to the table soon," ET had reported citing an official, who also said whenever the deal is struck, the tariff issues need to be addressed.
Washington has asked India to cut tariffs on products such as corn, soybeans, apples, almonds and ethanol, and to give greater access for US dairy goods. But New Delhi has opposed these requests, saying they threaten the livelihood of small and marginal farmers.
Meanwhile, US President Donald Trump said India has offered to lower its tariff rates after the US imposed 50% duties last week as punishment for New Delhi’s purchase of Russian oil.
“They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago,” Trump said in a Truth Social post Monday. It is not clear when the offer was made or if the White House intends to restart trade talks with India.
Trump’s latest post could suggest that the US is still open to trade talks, Bloomberg said citing Abhijit Das, a New Delhi-based expert in international trade policy. “This is his attempt to walk back on his earlier hardened stance on India,” he said.
"We are in dialogue with the US for a BTA," Goyal said at an industry chamber event in New Delhi.
Goyal said India is also getting new trading arrangements with countries such as European Union, Chile, Peru, New Zealand, Australia, Oman and has already concluded deals with EFTA bloc, UK, UAE.
"Lots have happened and lots more to go," Goyal said, adding that India is a provider of 18% of global growth.
The Economic Times had reported on August 28 citing unnamed officials that India is hopeful of resuming negotiations with the US on the proposed bilateral trade agreement (BTA) and resolving the issue relating to the steep 50% tariffs on Indian goods will be key to striking the deal. Bloomberg also said citing officials that India and the United States are keeping informal talks going, and New Delhi has no immediate plans to respond to US President Donald Trump’s 50% tariffs on the country.
Indian exporters are facing one of the toughest trade shocks in years as the United States on August 27 imposed an additional 25% tariff on key goods from India, adding to an existing 25% duty and bringing the total US levy to 50%. The move is linked to India’s continued purchases of Russian oil and defence equipment. White House trade adviser Peter Navarro and US Treasury Secretary Scott Bessent have accused India of indirectly funding Russia’s war in Ukraine through its oil imports.
This came while India and US have been engaged in trade pact talks for months. The sixth round of talks for the BTA was set for August 25 in New Delhi, but the US delegation cancelled their visit. Both sides are aiming to finish the first phase of talks by this autumn. The trade deal is meant to more than double bilateral trade to $500 billion by 2030 from the current $191 billion.
"We have not finalised the new dates because of the overhang of this (50%) additional tariff. It was not practical to have official level discussions on the entire BTA (because of these high tariffs). We hope that we will get back to the table soon," ET had reported citing an official, who also said whenever the deal is struck, the tariff issues need to be addressed.
Washington has asked India to cut tariffs on products such as corn, soybeans, apples, almonds and ethanol, and to give greater access for US dairy goods. But New Delhi has opposed these requests, saying they threaten the livelihood of small and marginal farmers.
Meanwhile, US President Donald Trump said India has offered to lower its tariff rates after the US imposed 50% duties last week as punishment for New Delhi’s purchase of Russian oil.
“They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago,” Trump said in a Truth Social post Monday. It is not clear when the offer was made or if the White House intends to restart trade talks with India.
Trump’s latest post could suggest that the US is still open to trade talks, Bloomberg said citing Abhijit Das, a New Delhi-based expert in international trade policy. “This is his attempt to walk back on his earlier hardened stance on India,” he said.
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