India is holding talks with the U.S. on a bilateral trade agreement (BTA), Minister for Commerce and Industry, Piyush Goyal, said on Tuesday, days after Washington doubled tariffs on Indian goods over New Delhi’s continued Russian oil imports.
Speaking at an industry event in the capital, Goyal emphasised that India is simultaneously pursuing new trade partnerships with the European Union (EU), Chile, Peru, New Zealand, Australia, and Oman, while deals have already been concluded with the EFTA bloc, the UK, and the UAE.
“A lot has been achieved, and much more remains to be done,” Goyal noted, highlighting that India now accounts for 18% of global economic growth.
Earlier on August 28, The Economic Times reported, citing its unnamed government sources, that India hoped to resume negotiations with Washington soon, though addressing the steep 50% U.S. tariff on Indian goods remains central to sealing the agreement.
According to Bloomberg, informal talks are continuing, even as New Delhi has avoided announcing retaliatory measures against U.S. President Donald Trump’s tariff hikes.
Trump’s Tariff Salvo
The shock to Indian exporters has been severe. On August 27, the U.S. imposed an additional 25% duty on several key imports from India, effectively doubling the levy to 50%.
The move is linked to India’s ongoing purchases of Russian crude oil and defence equipment—transactions Washington claims indirectly fund Moscow’s war in Ukraine.
Senior U.S. officials, including White House trade adviser Peter Navarro and Treasury Secretary Scott Bessent, have publicly accused India of enabling Russia’s war effort through these purchases.
This escalation comes amid months of back-and-forth trade negotiations.
Ongoing BTA Negotiations
The sixth round of talks for the BTA, scheduled for August 25 in New Delhi, was abruptly cancelled after the U.S. delegation pulled out.
Both governments had been aiming to wrap up the first phase of discussions by autumn, with a long-term goal of more than doubling bilateral trade from $191 billion today to $500 billion by 2030.
Washington, for its part, has pressed India to lower tariffs on agricultural products such as corn, soybeans, apples, almonds, and ethanol, and to allow greater market access for U.S. dairy exports.
New Delhi has rejected these demands, arguing that they could devastate the livelihoods of millions of small farmers.
Trump’s Zero-Tariff Claim
Meanwhile, Trump claimed in a post on Truth Social that India has now offered to slash tariffs to “nothing” following Washington’s punitive 50% duties.
“They should have done so years ago,” he wrote, adding, “It may be too late now.” It remains unclear when, or if, such an offer was formally made, and whether the White House is prepared to restart negotiations.
Analysts say Trump’s statement could signal a softening of Washington’s position.
(With inputs from Reuters and IBNS)
