India Responds to Trump’s Tariff Threats: Election Comments Don’t Define Ties

Commerce Minister Piyush Goyal assured that India sees the U.S. as a reliable trade partner despite Donald Trump’s election promise to raise tariffs. He explained that India’s tariffs are defensive, particularly aimed at countering China, and suggested an FTA as the best solution to avoid tariffs. Goyal emphasized that election comments don’t determine the future of U.S.-India relations.

Commerce and Industry Minister Piyush Goyal emphasized that India's relationship with the U.S. remains strong and independent of campaign rhetoric, addressing Donald Trump’s threats to raise tariffs by 20% on all imports. Goyal underlined that comments made during elections don’t dictate long-term ties, as India continues to view the U.S. as a “reliable” trade partner. He highlighted that India has maintained excellent relations with three different U.S. administrations under Prime Minister Modi and expects these ties to strengthen regardless of the electoral outcome.

Goyal explained that India’s tariffs, often criticized by the U.S., are defensive measures, particularly against China’s unfair trade practices. He noted that every country, including the U.S., protects certain sectors based on national interest and gave the example of U.S. tariffs on peanut farmers as a similar defensive move. He suggested that the best way to resolve tariff concerns is through a Free Trade Agreement (FTA), but acknowledged the current lack of interest from the U.S.

The discussion comes amid Trump's critical comments on India, calling it a “big abuser” of trade. However, Goyal maintained that India’s tariff policies are focused on protecting its domestic industries from substandard imports, particularly from countries like China. He added that India’s tariff structure under the Most Favoured Nation (MFN) status treats all countries equally, and reducing import duties unilaterally could benefit third countries, not necessarily the U.S.

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Goyal reiterated that future trade negotiations between India and the U.S. could address these issues, and pointed to India’s recent successful trade agreements with countries like the UAE, Australia, and Europe as examples of bilateral solutions to tariff challenges.