‘No Need to Panic’: Union Minister on US Tariffs, Says Talks Underway

Union Commerce and Industry Minister Piyush Goyal on Thursday urged calm over the United States’ decision to impose steep tariffs on Indian goods, saying talks are underway and an “equitable, fair agreement” will eventually be reached.

Speaking to the media, Goyal said India and the US continue to share strong ties despite Washington’s move to slap a 50% duty on Indian exports. “I don’t think there is any need to panic. We should allow negotiations to take their course. We continue to have good relations with the United States, and I am confident we’ll resolve these issues fairly,” he said.

US President Donald Trump recently doubled tariffs on Indian imports, raising the duty from 25% to 50%, citing India’s continued purchase of Russian oil. The additional levy took effect on August 27 and now applies to all Indian goods entering the American market.

Asked about the time frame for talks, Goyal said trade negotiations are always long-term processes. “There is never a timeline in negotiations. You should do it patiently, as you are doing it for the long term,” he noted.

Meanwhile, the rollout of major Goods and Services Tax (GST) reforms coincided with the tariff announcement, but Goyal clarified the two were unrelated. “Such reforms cannot happen overnight; work has been going on for months,” he said.

At its 56th meeting on September 3, the GST Council decided to simplify the tax structure by merging the 12% and 28% brackets into two main slabs, 5% and 18%. The compensation cess on coal, carbonated beverages with fruit content, and mid-to-large cars has also been scrapped.

Finance Minister Nirmala Sitharaman, who chaired the meeting, said the rationalisation was aimed at easing compliance and making GST simpler. Under the new structure, essential items such as food, agricultural tools, handicrafts and medical kits remain at 5%. The 18% bracket will cover most consumer goods, small cars, motorcycles (below 350cc), electronics, and household products.

A higher 40% slab stays in place for luxury and sin goods, including tobacco products, pan masala, aerated sugary drinks, luxury cars, high-end motorcycles, yachts, and helicopters. Some essential services, particularly health and education, remain fully exempt.

The changes mark one of the most significant overhauls of GST since its launch, coming at a time when trade tensions with Washington have added uncertainty for exporters.

Also Read: Tariffs on India Are “Direct Action” Against Russia, Says Trump