Ahead of the upcoming trade negotiations between India and the United States, External Affairs Minister S. Jaishankar has advised against drawing early conclusions about the potential outcomes of the discussions.
His remarks come in response to recent statements by US President Donald Trump, who suggested that India is prepared to eliminate tariffs on American goods.
“Trade negotiations between India and the U.S. are ongoing and complex,” Jaishankar stated on the sidelines of an event in New Delhi.
“It is essential to recognize that nothing is finalized until all aspects are agreed upon. Any assessment at this stage would be premature.”
President Trump’s comments, made earlier in the day at a business forum in Doha, indicated optimism about the trade talks, asserting that India is now willing to offer a zero-tariff regime for American products.
Jaishankar’s cautionary note sets the tone for Commerce and Industry Minister Piyush Goyal’s forthcoming visit to Washington, scheduled from May 17- 20, 2025.
Goyal will lead high-level discussions with US officials, aiming to advance the negotiations on the Bilateral Trade Agreement (BTA). Accompanying him will be a team of Indian negotiators, including Special Secretary Rajesh Agrawal, who will engage in detailed talks with their US counterparts from May 19 to 22.
In February, during Prime Minister Narendra Modi’s visit to the US., both governments agreed to work towards a comprehensive BTA covering multiple sectors. Since then, trade tensions have fluctuated, with the US imposing a 26% tariff on certain Indian imports in April, citing the need to correct its trade imbalance.
However, Washington also paused these reciprocal tariffs for 90 days, providing a window for diplomacy and negotiation.
India has made several goodwill gestures in recent months, including reducing duties on high-profile U.S. exports like Harley-Davidson motorcycles and bourbon whiskey. Additionally, the country has scrapped the digital services tax, often referred to as the ‘Google Tax,’ which had affected American tech giants.
The stakes are high for both sides. The US is India’s largest export destination, accounting for 17% of outbound shipments. Based on the data available in the public domain, India exported $77.52 billion worth of goods to the U.S., resulting in a trade surplus of $35.32 billion in 2023–24.
