India’s Trade Minister Piyush Goyal embarked on a sudden trip to the United States on March 3 to engage in crucial trade talks, according to two government officials. The visit comes just weeks before President Donald Trump’s planned reciprocal tariffs are set to take effect.
Goyal, who also serves as the Minister for Industry, canceled previously scheduled meetings until March 8 to make the trip. The Trade Ministry has not yet responded to requests for comment.
During Prime Minister Narendra Modi’s visit to the US in February, both nations agreed to work on the first segment of a trade deal by the fall of 2025, with the goal of achieving bilateral trade worth $500 billion by 2030.
Trump’s proposal to impose reciprocal tariffs from early April on trading partners, including India, has raised concerns among Indian exporters in sectors such as autos and agriculture. Citi Research analysts estimate potential losses at around $7 billion annually.
During his visit, Goyal will seek clarity on the US reciprocal tariffs to assess their impact on India. He may also discuss potential Indian concessions and a trade deal aimed at reducing tariffs and boosting bilateral trade.
India is open to discussing tariff cuts on industrial products, including automobiles and chemicals, but is resisting pressure to lower tariffs on agricultural products, citing the potential impact on millions of poor farmers. To ease trade tensions, India has already reduced tariffs on several items, such as high-end motorcycles and bourbon whiskey, while promising to review other tariffs, increase energy imports, and purchase more defense equipment.
India’s merchandise trade with the US, its largest trading partner, has increased by about 8% year-on-year to over $106 billion in the ten months through January, with India maintaining a trade surplus.
Analysts warn that chemicals, metal products, and jewelry, followed by automobiles, pharmaceuticals, and food products, are the most vulnerable sectors to potential US reciprocal tariffs. If the US expands these tariffs to a broader range of farm products, India’s agricultural and food exports, including shrimp and dairy, could be among the hardest hit, according to a report by the Global Trade Research Initiative, a Delhi-based think tank.