What's Next for India-US Trade Relations? Jaishankar Weighs In

Navigating Trade Challenges Between India and the US

New Delhi: External Affairs Minister S. Jaishankar emphasized that any trade agreement with the United States must honor India's 'red lines.' He made these remarks during an event, highlighting the ongoing tensions between the two nations, particularly regarding tariff policies.

During a session focused on 'Shaping Foreign Policy in Turbulent Times,' Jaishankar acknowledged the existing challenges in India-US relations, many of which stem from the stalled trade negotiations.

He pointed out the necessity of reaching a consensus on trade, given that the US represents the largest market globally, while also insisting that India's core interests must be safeguarded.

"We currently face issues with the United States, primarily due to our inability to finalize trade discussions, which has resulted in tariffs imposed on Indian goods," he stated.

Jaishankar also mentioned a second tariff that he deemed unfair, which targets India for sourcing energy from Russia, despite other nations with more adversarial ties to Russia not facing similar scrutiny.

The relationship between New Delhi and Washington has been under significant strain since former President Trump increased tariffs on Indian imports to 50%, including an additional 25% on India's Russian crude oil purchases.

India has labeled these US actions as 'unfair, unjustified, and unreasonable.'

"Ultimately, a trade understanding with the US is essential, not only because it is the largest market but also because many countries have established such agreements," Jaishankar remarked.

"However, it must be an agreement that respects our fundamental boundaries. There are negotiable aspects and those that are non-negotiable," he added.

Jaishankar reiterated India's clear stance on the matter, stating, "We need to identify that common ground, and discussions have been ongoing since March."

After a brief pause, India and the US have resumed talks regarding the proposed trade deal.

The minister also noted that despite the tensions, not all aspects of the bilateral relationship are adversely affected.

"While there are challenges, we are not in denial about them. These issues require negotiation and resolution, which is precisely what we are working towards," he explained.

He concluded by cautioning against overinterpreting the situation, asserting that much of the relationship continues to function normally, with some areas even experiencing growth.