Why Did Donald Trump Announce India-US Trade Deal First? Piyush Goyal Responds

Last Updated:February 03, 2026, 17:58 IST

Speaking about the deal's impact, Piyush Goyal said it would create numerous opportunities across India's export-oriented industries.

Commerce Minister Piyush Goyal

Commerce Minister Piyush Goyal explained that US President Donald Trump announced the landmark India-US trade deal before Prime Minister Narendra Modi because it was Washington that had originally imposed tariffs on Indian goods and subsequently withdrew them.

The minister’s clarification came as he detailed the wide-ranging benefits of the agreement for Indian industry, emphasizing that sensitive sectors like agriculture and dairy had been carefully protected during negotiations.

Trump and PM Modi announced the breakthrough trade deal following a telephonic conversation that effectively ended a period of severe trade tensions between Washington and New Delhi. The agreement slashes US tariffs on Indian goods from a punitive 50% down to 18% as Washington dropped an additional 25% punitive levy that had been imposed in August last year in response to India’s continued purchases of Russian oil, bringing the total effective tariff down from the previous 50%.

Speaking about the deal’s impact, Goyal said it would create numerous opportunities across India’s export-oriented industries. He said, “I believe that through this deal, our MSMEs, our engineering sector, all the players in our engineering sector- whether they manufacture auto components, electrical parts, or work on selling various types of engineering goods in America, or plan to do so in the future- our textile sector, our gems and jewelry sector, our leather goods sector, our marine goods sector, will all get numerous opportunities through this deal."

Goyal emphasized that PM Modi had ensured the protection of India’s sensitive economic sectors, particularly agriculture and dairy, during the negotiations.

“PM Modi has always championed both the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for the people in this sector. I am pleased that the entire country understands and appreciates this, and it resonates deeply with them. The sensitive factors of India’s economy, particularly agriculture and dairy, have been protected," Goyal said.

The minister noted widespread enthusiasm across the country following the deal’s announcement, particularly among stakeholders in export-oriented and technology sectors.

“We have seen reports from across the country; there is widespread enthusiasm. All those involved in India’s exports, those connected to India’s technology sector, those who want to bring modern technology to India or become part of global supply chains and global value chains, those who want to establish global capability centers, and those who want to invest in various sectors, especially labor-intensive ones that provide employment to millions of people- all are excited by this," Goyal said.

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