Goyal: US an important trading, strategic partner for India

Goyal: US an important trading, strategic partner for India

India and the U.S. Strengthen Trade Ties Amid Tariff Uncertainty

Commerce and Industry Minister Piyush Goyal emphasized the United States' significance as a strategic trading partner during a meeting with U.S. Commerce Secretary Howard Lutnick and Ambassador Sergio Gor on February 26, 2026. The discussions focused on expanding bilateral economic cooperation amid evolving tariff dynamics following the U.S. Supreme Court's invalidation of President Donald Trump's emergency tariffs.

The meeting comes as India and the U.S. work to finalize the legal framework for a phased trade agreement. In February 2026, both nations agreed to reduce reciprocal tariffs— lowering U.S. duties on Indian exports from 50% to 18% while India committed to purchasing $500 billion in American goods over five years. However, the Supreme Court's ruling, which limited executive authority to impose broad tariffs, has created uncertainty. The U.S. has since reset global tariffs to 10% for 150 days, with Trump threatening further adjustments. India has postponed a delegation to Washington to finalize the interim deal but remains committed to the agreement's core terms.

Goyal highlighted the importance of safeguarding commercial interests against future unilateral tariff actions while maintaining strong trade ties. Analysts suggest India may seek legal protections in negotiations to mitigate risks to its export sectors. Meanwhile, the U.S. has signaled it will continue collecting tariffs under revised legal frameworks, framing the arrangement as "fair".

Beyond U.S. relations, India has signed nine free trade agreements (FTAs) with 38 countries, providing preferential access to two-thirds of global markets. These pacts, Goyal noted, bolster Indian exports, services, and talent mobility, with new negotiations underway, including with Canada.

The U.S.-India economic relationship, now targeting $500 billion in bilateral trade, remains a priority for both nations as they navigate legal and geopolitical challenges to build resilient supply chains.