Politics

India-US discuss trade amid tariff tensions: Jaishankar and Rubio stress urgency on bilateral deal

With the latest round of high-level dialogue, both nations appear committed to expediting the agreement process

April 8, 2025

Telephonic talks address new US tariffs and ongoing trade negotiations

External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio held a phone conversation on Monday to address the impact of newly imposed American tariffs on Indian exports. According to the US State Department, both leaders explored steps to advance a “fair and balanced trade relationship.”

This discussion follows President Donald Trump’s recent announcement of a 10% baseline tariff on all imports to the United States. The decision imposes even steeper rates on certain countries, with India facing a 26% tariff under the revised policy. The move has disrupted global markets and caused concern among US allies and trade partners.

India responds with diplomacy over retaliation

Despite the sharp increase in tariffs, India has not introduced any countermeasures. Instead, New Delhi is focusing on ongoing negotiations with Washington to finalize a long-awaited Bilateral Trade Agreement. According to an Indian official, the agreement is expected to be concluded by autumn 2025.

Jaishankar shared details of the call on the social media platform X, stating, “Good to speak with @SecRubio today. Exchanged perspectives on the Indo-Pacific, the Indian Sub-continent, Europe, Middle East/ West Asia, and the Caribbean. Agreed on the importance of the early conclusion of the Bilateral Trade Agreement. Look forward to remaining in touch.”

US reaffirms commitment to balanced trade ties

In a statement, the US State Department echoed the need for timely progress, confirming that both sides reaffirmed their commitment to building a fair and balanced trade framework. They also discussed the implications of reciprocal tariffs imposed by the US on Indian goods.

Global security and humanitarian topics also covered

Beyond trade, the two leaders exchanged views on several geopolitical matters. These included security dynamics in the Indo-Pacific, tensions in West Asia, challenges in Europe, and humanitarian developments in the Caribbean and Indian subcontinent.

Earlier, during a speech at NATO headquarters in Brussels, Secretary Rubio called on major economies such as India and China to play a greater role in global humanitarian efforts. Referring to the recent earthquakes in Myanmar, Rubio emphasized the importance of international solidarity and urged emerging powers to contribute more actively.

Path ahead for US-India trade relations

India and the United States had previously committed, in February 2025, to work toward finalizing a comprehensive trade pact aimed at resolving tariff disputes and strengthening economic cooperation. With the latest round of high-level dialogue, both nations appear committed to expediting the agreement process.

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