India and the United States are nearing the conclusion of a long‑pending interim trade agreement, but Commerce Minister Piyush Goyal has made it clear that New Delhi will proceed only if the pact guarantees a tariff edge over competing economies. Speaking in London during the India Global Forum’s UK‑India Week 2026, Goyal said the deal is “very close” yet stressed that India “will not compromise” on its economic interests.
Goyal explained that the agreement was originally negotiated when the US, under the International Emergency Economic Powers Act (IEEPA), had placed India under a 50% tariff regime. At that time, India enjoyed an 18% competitive advantage over neighbouring and ASEAN economies. With the US Supreme Court recently striking down those tariffs—and a separate 10% tariff set to expire on 24 July—India now seeks firm guarantees that its exporters will retain preferential access.
The minister emphasised that India must remain more competitive than countries with similar manufacturing profiles, naming Vietnam, Thailand, the Philippines, Indonesia, China, Malaysia, Bangladesh, Sri Lanka, and others. Without a clear tariff differential, he said, the agreement would lose its strategic value.
Goyal’s remarks follow the visit of US Trade Representative Jamieson Greer to New Delhi, where he met Goyal and senior officials to finalise the framework for the first phase of the trade pact. The talks, which come after chief‑negotiator‑level meetings earlier this month, have raised expectations that the deal could be concluded soon—provided the tariff issue is resolved.
Recent legal developments in the US, however, have complicated the timeline. Goyal noted that India needs a “valid reason” to operationalise the agreement already negotiated, and tariff certainty is central to that decision.