By TRH News Desk
Piyush Goyal Says India-US Trade Deal Hinges on Tariff Advantage for Indian Exporters
New Delhi, June 25, 2026 — Union Commerce and Industry Minister Piyush Goyal has indicated that uncertainty surrounding US tariff policy remains a key obstacle to the implementation of a proposed trade agreement between India and the United States, stressing that New Delhi needs a clear competitive advantage before bringing any deal into force.
Speaking to RT India, Goyal said previous negotiations had been structured around a significant reduction in US tariffs on Indian exports. According to the minister, the proposed arrangement was designed to lower tariff levels from around 50 percent to 18 percent, creating a substantial edge for Indian exporters over regional competitors.
“The whole deal was centered around that competitive advantage that we got with 18% over our neighbours and other competing countries,” Goyal said.
He noted that under the proposed framework, India would have enjoyed lower tariff rates than most neighbouring countries and major manufacturing competitors in Asia, including Vietnam, Thailand, the Philippines, Indonesia, Malaysia and China. Such an advantage, he argued, was a central reason why the agreement was considered attractive for India.
However, Goyal pointed to recent developments in the United States, including legal and policy uncertainty surrounding tariff measures, as factors that have altered the negotiating landscape.
“With the Supreme Court striking down the tariffs, and now with the 10% tariff regime expiring on July 24, we obviously have to have some reason to be able to enter into force that agreement that we have already agreed upon,” he said.
The minister emphasized that India must secure tariff terms that preserve its competitiveness relative to countries with similar cost structures and levels of economic development.
“We have to ensure that we get a competitive advantage over countries in the same stage of development or with similar cost structures as India,” Goyal said.
His remarks suggest that while substantial progress may have been made in negotiations, implementation of any agreement will depend on the final tariff framework adopted by Washington.
The comments come at a time when India and the United States are seeking to deepen economic ties and expand bilateral trade. Both sides have expressed interest in resolving market access issues and strengthening supply-chain cooperation, particularly as global manufacturers diversify production bases beyond China.
Goyal did not provide a timeline for finalizing the outstanding issues but indicated that the current focus remains on establishing a tariff structure that delivers meaningful benefits to Indian industry and exporters.
“Until the framework of getting that competitive advantage can be finalized, we can’t enter into force” the agreement, he said.
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