As the deadline approaches for the U.S. to implement “reciprocal tariffs” on Indian goods beginning July 9, Indian Commerce Minister Piyush Goyal has voiced cautious optimism that both countries may sign an initial segment of a broader trade agreement before that date. Although hopeful, Goyal refrained from confirming whether a preliminary deal would indeed be finalized in time.
“We are in continuous dialogue. I have always been an optimist,” Goyal remarked during an interview with The Hindu on the sidelines of the India Global Forum 2025 conference held in London.
Expressing confidence in the partnership between the two countries, he added, “I’m very confident that, given that the U.S. and India are very friendly countries, trusted partners, both wanting to have resilient, reliable, trusted supply chains, both vibrant democracies, we will be able to come up with a win-win for the businesses of both countries.” Without a deal, Indian exports to the U.S. could face a steep 26% tariff starting in early July.
While there is urgency surrounding the negotiations, Goyal chose not to disclose whether the initial portion of the Bilateral Trade Agreement (BTA) under discussion would include sensitive sectors such as dairy and agriculture. When questioned on this, he stated, “I think negotiations are best left to the negotiators and the negotiating table. We will, of course, inform the media at the right time.”
He was similarly tight-lipped regarding the impact of the expiration of the U.S. Trade Promotion Authority (TPA) on the overall agreement. The TPA is a legislative mechanism allowing the U.S. President to expedite trade deals, especially those involving tariffs lower than the standard Most-Favoured Nation (MFN) rates offered under the World Trade Organization (WTO) guidelines.
Earlier in the day, Goyal shared a platform with his British counterpart, Business and Trade Secretary Jonathan Reynolds, during a moderated session. Their appearance followed the recent conclusion of a free trade agreement between India and the United Kingdom on May 6. Goyal attributed the success of that deal to mutual respect for each other’s concerns and the willingness to set aside issues that were not immediately negotiable.
Turning attention to India’s ongoing trade discussions with the European Union, Goyal said that the aim was to wrap up a comprehensive trade pact by the end of the current calendar year. When asked whether the agreement would be finalized as a full-scale deal or as an interim arrangement, he responded by invoking a metaphor. “There’s that famous English phrase…since we are in Great Britain…‘the air is pregnant with possibilities,’” he said, emphasizing that the exact nature and form of the final deal remained undetermined at this stage.
On the question of whether the return of Donald Trump and his “America First” policy to the U.S. presidency had any bearing on India’s negotiations with the European Union, Goyal dismissed such notions, stating that bilateral talks are generally insulated from third-party influences. His comments came a week after European Union Foreign Minister Kaja Kallas called the EU a “reliable, predictable and credible partner for India” during a joint press briefing with India’s External Affairs Minister S. Jaishankar. Since Trump’s return to power, various countries have been reevaluating their diplomatic and trade ties with Washington.
Goyal, however, maintained that bilateral negotiations operate independently of geopolitical shifts. “I don’t think there’s any impact of any other situation on a negotiation between two countries, because these negotiations are not a short-term arrangement. These are like long-term marriages you are negotiating after crystal-gazing … 25 years, 50 years, into the future,” he explained.
Commenting on the future of multilateral trade, Goyal reiterated India’s commitment to the World Trade Organization (WTO), despite growing skepticism in the global community about the body’s efficacy. He emphasized that the WTO still plays a significant role in maintaining global trade norms and frameworks, even as the U.S. steps back from multilateralism under the Trump administration.
“[India] believes we have to strengthen the WTO over the next few years through dialogue and discussions and will continue to play an increasingly important role to promote multilateralism,” Goyal stated. He underscored India’s belief in the importance of global cooperation through established institutions.
Meanwhile, India has also informed the WTO of its right to consider retaliatory tariffs in response to the U.S.’s decision to increase import duties on steel and aluminum. This move serves as a signal of India’s readiness to respond firmly when its trade interests are affected.
Addressing a specific issue involving Tata Steel, Goyal said that the Indian government had not raised the matter directly with British authorities. Tata Steel owns the Port Talbot steel plant in South Wales, which has faced operational adjustments, including sourcing raw materials from India and Europe, after its blast furnace was shut down last year. The plant is scheduled to transition to an electric arc furnace by 2027.
These adjustments may complicate matters if the U.S. insists on tighter rules regarding input materials before granting tariff reductions as part of any UK-U.S. agreement. According to a report by The Guardian, the Trump administration has warned that it may continue imposing a 25% tariff on British steel unless the UK can assure that Tata Steel’s inputs comply with American standards.
When asked whether India had intervened or planned to intervene on behalf of Tata Steel in negotiations with the U.K. or the U.S., Goyal replied bluntly, “That, the U.K., has to negotiate with the U.S.”
In summary, Goyal’s remarks convey a cautiously hopeful tone regarding an initial trade pact between India and the U.S. before the July 9 tariff deadline. While refraining from revealing specifics, his comments stress India’s readiness to pursue long-term, mutually beneficial agreements rooted in trust and democratic values. He emphasized the importance of resilience in supply chains, bilateral respect in negotiations, and the continued relevance of multilateral platforms such as the WTO.