Piyush Goyal: US-India Trade Relations Will Grow Stronger

Union Minister of Commerce and Industry Piyush Goyal on Thursday struck a note of optimism amid heightened tensions in US-India trade relations, asserting that the decades-long friendship between the two democracies will withstand current challenges posed by escalating tariffs.

The remarks come in the wake of US President Donald Trump’s decision to levy the highest-ever tariffs on India — a combined 50 per cent duty. Of this, 25 per cent was imposed in April 2025, and another 25 per cent was added from August 27 as “punishment” for India’s continued purchase of Russian crude oil.

‘This situation will pass,’ says Piyush Goyal

Speaking to News18 on September 4, Goyal emphasized that the temporary hurdles should not overshadow the larger picture of cooperation.

“I think the US-India relationship is one of the most consequential relationships on the globe today. We are two very large democracies. We believe in the rule of law. We are allies and friends for long. I look at this only as one more situation which will pass as there’s a deeper understanding, and I’m very confident this relationship will only strengthen in the years to come,” he said.

While refusing to predict an exact timeline for resolution, the minister expressed hope that the standoff could be addressed “soon enough.” He also reiterated that the foundation of US-India trade relations was strong enough to withstand turbulence.

A multi-dimensional partnership

Underscoring the wider scope of cooperation, Goyal noted that the relationship goes beyond trade.

“We will continue to be engaged with the US and I’m sure we will continue to have greater economic relationships, defence relationships, greater interest in a safe, fair and secure Indo-Pacific. In some sense, it’s a very multi-dimensional relationship where we contribute to each other’s economies in different dimensions and will continue to do so,” he added.

The minister also addressed the prospects of a bilateral trade agreement (BTA), hinting that while progress may not be immediate, both governments remain committed.

“Prime Minister Narendra Modi and President Trump in February tasked their teams to conclude the first tranche of a bilateral trade agreement by fall of 2025. I’m sure we will continue to engage and find solutions to reach that outcome. A delay of a few weeks or months is inconsequential when seen in the context of long-term goals,” Goyal explained.

Piyush Goyal: India’s patient approach

On being asked whether India might consider retaliatory tariffs like China, Goyal dismissed the idea, stressing that India prefers diplomacy and dialogue over confrontation.

“India is a patient country. And I believe it should give it every effort to come to a better, deeper understanding within the framework of international trading laws. We have always believed in dialogue, in diplomacy, and in an effort to strengthen rather than weaken relationships,” he said.

He also downplayed “incendiary” remarks from some US officials, labeling them as “personal opinions” that do not define the official stance.

“Our friendship is far stronger than a few comments that may be made by a few people,” he remarked.

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