Commerce Minister Piyush Goyal said that his meeting with US Commerce Secretary Howard Lutnick in Washington was constructive, as the two aimed for a “mutually beneficial” bilateral trade agreement (BTA).
“Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people,” Goyal posted on social media platform X early on Friday morning.
Goyal’s reference to a “mutually beneficial” agreement reinforces that New Delhi wants to continue pursuing gains for Indian industry, despite the aggressive posture adopted by US President Donald Trump regarding tariff elimination on American products.
The Indian Minister held a series of meetings with his counterparts — Lutnick and US Trade Representative Jamieson Greer — in Washington this week to reach an interim trade agreement within the 90-day pause period on reciprocal tariffs, sources said.
On April 2, Trump announced reciprocal tariffs on all countries that have a trade surplus with the US, in a bid to provide a level playing field for American companies.
India was saddled with a 26 per cent reciprocal tariff, while tariffs on competing countries such as Vietnam and Bangladesh were higher.
On April 9, Trump announced a 90-day tariff pause to negotiate trade deals, but a 10 per cent baseline tariff on all countries remained in place.
“As Goyal held discussions with his counterparts, negotiating teams from the two countries also held their meetings. The objective is to strike an early deal before July 8 to avoid the full reciprocal tariff while taking the negotiations for the BTA forward to deliver the first tranche by Fall 2025 (September-October),” the source said.
Although Prime Minister Narendra Modi and Trump agreed to work on a mutually beneficial BTA during their meeting on February 13, and India had a first-mover advantage, many other countries, including Vietnam and Bangladesh, are attempting to do the same.
The US wants India to significantly lower tariffs on items such as automobiles, motorcycles, alcohol, and many agricultural products. In the early trade deal, it also seeks commitments on digital trade and market access for ethanol and certain genetically modified (GM) products.
Trump has said several times that India had already agreed to eliminate its tariffs on American products, but this was not corroborated by India.