Piyush Goyal meets US commerce secretary in Washington to discuss proposed trade pact
Commerce and Industry Minister Piyush Goyal held his second meeting with US Commerce Secretary Howard Lutnick in Washington on May 23, 2025 to discuss the proposed bilateral trade agreement currently under negotiation between the two countries. On May 20 also, Goyal held a meeting with Lutnick to expedite the talks on the first phase of the trade pact. The meeting assumes significance as both the countries are looking at finalising an interim trade pact by July 8.
The four-day discussions between the chief negotiators have also concluded in Washington on May 22. In the interim trade deal, New Delhi is pushing for full exemption from the 26 per cent reciprocal tariff on Indian goods. The US on April 2 imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days till July 9. However, the 10 per cent baseline tariff imposed by America remains in place. Due to the 90-day suspension of the 26 per cent additional import duty, Indian exporters are at present paying just 10 per cent baseline tariffs, instead of 26 per cent earlier proposed. At present, the Trump administration requires approval from the US Congress to bring tariffs below the MFN (most favoured nation) rates. But the administration has the authority to remove the reciprocal tariffs imposed on a number of countries, including India.
India may look at certain commitments from the US on the duty concessions for its labour-intensive sector in the first tranche of the proposed bilateral trade agreement (BTA). Both countries have fixed a deadline to conclude the first phase of the pact by fall (September-October) of this year to more than double bilateral trade to $500 billion by 2030.
To boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with America. On the other hand, the US wants duty concessions in sectors like certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts and GM (genetically modified) crops. While the import of GM crops from the US continues to remain a non-starter due to regulatory norms in India, New Delhi is open to import of non-GM products like Alpha alpha hay (a kind of cattle feed).
