India’s Commerce Minister, Piyush Goyal, has embarked on an urgent visit to the United States to engage in trade discussions, just weeks before the implementation of President Donald Trump’s proposed reciprocal tariffs. According to government officials, Goyal’s trip was unexpected, leading him to cancel previously scheduled meetings until March 8. Along with handling trade affairs, he also oversees India’s industrial sector.

The Indian trade ministry has yet to issue an official statement on the visit. However, sources indicate that Goyal's primary focus will be to gain clarity on the upcoming US tariffs and evaluate their potential impact on Indian industries. Discussions may also include possible trade concessions and measures to strengthen economic ties between the two nations.

During Prime Minister Narendra Modi’s recent US visit, both countries committed to finalizing the first phase of a trade deal by fall 2025, with an ambitious goal of reaching $500 billion in bilateral trade by 2030. However, Trump's proposed reciprocal tariffs, set to take effect in early April, have raised concerns among Indian exporters across various sectors, including automobiles and agriculture. Analysts from Citi Research estimate that India could face losses of approximately $7 billion annually due to these tariffs.

India has expressed willingness to negotiate lower tariffs on certain industrial goods such as automobiles and chemicals. However, officials maintain that reducing tariffs on agricultural products would harm millions of small farmers, making it a sensitive issue. In an effort to ease trade tensions, India has already reduced tariffs on some US goods, including cutting duties on high-end motorcycles from 50% to 30% and slashing bourbon whiskey tariffs from 150% to 100%. Additionally, India has pledged to review other tariffs and increase purchases of US energy and defense equipment.

Trade between India and the US has been growing steadily, with merchandise trade rising by 8% year-on-year to surpass $106 billion in the ten months leading up to January. India currently maintains a trade surplus with the US. Experts warn that sectors like chemicals, metal products, jewelry, automobiles, pharmaceuticals, and food products could be the most affected by the US tariffs. A report by the Delhi-based Global Trade Research Initiative (GTRI) highlights that India’s agricultural and food exports—particularly shrimp and dairy—could be hit the hardest if tariff differentials, which currently reach up to 40%, remain unaddressed.

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