Despite a deepening tariff war with the US, Commerce Minister Piyush Goyal said India remains in active talks with Washington and expects to finalize a bilateral trade agreement by November, even as he warned that “geopolitical issues” have overtaken trade in recent discussions.
Speaking at the Annual Global Investor Conference 2025 in Mumbai, Goyal acknowledged rising tensions triggered by President Donald Trump’s 50% tariffs on Indian imports, but emphasized that dialogue continues. “We have had a little bit of geopolitical issues overtaking trade issues in our negotiations with the United States of America,” he said.
The tariffs, imposed in August, target Indian exports in retaliation for New Delhi’s continued oil trade with Russia—moves the Trump administration claims help fund the war in Ukraine. Trump has also lashed out at India’s arms purchases from Moscow, fueling diplomatic strain.
However, Goyal maintained that India will not “bow down” or be “bullied,” drawing clear red lines in the talks. “We have strategic autonomy… we are not opening up our agriculture and dairy sectors,” he said.
Talks for a Bilateral Trade Agreement (BTA) began in March and have completed five rounds. A sixth round was postponed after the tariffs took effect, but both sides reportedly remain in close communication. Officials believe the dispute is a temporary phase in a long-term relationship.
“Lots happen, lots more to go,” Goyal said at another industry forum earlier in the day. “With the US, we are in dialogue with them on a BTA.”
US Treasury Secretary Scott Bessent recently acknowledged the complexity of the relationship, saying, “At the end of the day, we will come together.”
India has already signed trade agreements with Australia, the UAE, Mauritius, the UK, and the EFTA bloc.