With US President Donald Trump imposing steep import tariffs on several key trade partners such as Canada, Mexico, and its largest trading partner China, many are concerned about the potential impact of imminent punitive tariffs on imports from India. This could harm the country’s economy and hinder import growth.
It, however, is too early to be concerned about any such adverse impact, believes Commerce Minister Piysuh Goyal. At the India Today-Business Today Budget Round Table 2025, in conversation with India Today news director and executive director of Business Today Rahul Kanwal, the minister alleviated some of the concerns that many investors and exports currently have.
According to Goyal, the Indian government and the past US governments have had a very good relationship. “We had a wonderful relationship. We never allowed none of the issues to come into way of US-India trade discussions (earlier)”, said Goyal, adding that we are not concerned about any negative impact of tariffs for now.
“I don’t want to preempt. We have to watch the signals. I don’t see any cause for worry. We are two mature countries,” Goyal added.
Talking about the issue of illegal immigration as the new US government under President Trump started to deport Indians who were staying in the developed country illegally, Goyal says that is in line with the Indian government’s long-term policy. “India as a policy has practiced for long that we will not tolerate illegal immigration. That is an area where India and the US policies completely aligned.”
However, he also points towards the disparity in the formal trade numbers between the US and India. According to him, multiple avenues of money are being flown into the US from India which are not considered during calculations. For instance, he cites the example of Indian students spending US$ 12-13 billion every year in the US.
While the former finance minister P. Chidambaram pointed towards the lack of bi and multi-lateral trade treaties during the Modi government era, Goyal says as a policy the government will not sign such treaties unless it serves the national interest.
“We will sign an FTA when we find it in the interest of the nation, not with a gun pointed at our head. So, there is no hurry; there is no deadline to sign an FTA. For the government, the national interest is paramount, not some deadline,” says Goyal