Speaking recently, External Affairs Minister S. Jaishankar underscored that any future trade agreement between India and the United States must respect New Delhi’s core principles. He confirmed that both nations are actively working to find common ground amidst current tensions stemming from Washington’s tariff policies.
During an engaging interactive session, Jaishankar openly admitted to existing challenges in India-U.S. relations, many of which are directly tied to the stalled progress on their bilateral trade deal.
He stressed the critical need for a trade understanding, recognizing the U.S. as the world’s largest market. However, he firmly reiterated that India’s non-negotiable ‘red lines’ must be fully honored in any such agreement.
Jaishankar elaborated, stating, "Currently, we face difficulties with the United States, largely due to the failure to finalize our trade discussions. This impasse has resulted in tariffs being imposed on India."
These remarks were made during his address at the Kautilya Economic Conclave, where he discussed ‘Shaping Foreign Policy in Turbulent Times’.
He further highlighted an additional tariff, which India considers "very unfair," imposed for India’s energy imports from Russia. He pointed out that other nations, including some with more adversarial ties to Russia, also engage in similar energy sourcing without facing such penalties.
Relations between New Delhi and Washington have recently faced significant strain, particularly after former U.S. President Trump implemented a substantial increase in tariffs on Indian products, hiking them to 50%. This included an extra 25% duty specifically targeting India’s purchase of Russian crude oil.
India has firmly condemned these U.S. actions, labeling them as "unfair, unjustified, and unreasonable."
Jaishankar reiterated, "Ultimately, a trade understanding with the U.S. is essential, not only because it represents the world’s largest market but also because many other nations have successfully forged similar agreements."
He emphasized, "However, such an understanding must unequivocally respect India’s fundamental principles and ‘red lines.’ In any negotiation, there are elements open for discussion and those that are non-negotiable."
According to Jaishankar, India’s strategic approach remains unequivocally clear.
He added, "Our stance is very clear. The objective is to discover a mutually acceptable resolution, a conversation that has been actively ongoing since March."
Following a brief pause of several weeks, both India and the U.S. have recently restarted negotiations for the much-anticipated trade deal.
The External Affairs Minister also indicated that while trade relations are stressed, the broader engagement between the two countries is not entirely negatively affected.
He acknowledged, "Undoubtedly, problems and issues exist, and we are not denying them. Our ongoing efforts are precisely focused on negotiating, discussing, and resolving these very challenges."
He concluded by stating, "I would caution against over-interpreting the current situation beyond the specific issues at hand. It’s important to note that a significant portion of our relationship continues as usual, and in some areas, we are even seeing increased collaboration."
Pleased to address a distinguished gathering at #KautilyaEconomicConclave2025 on ‘Seeking Prosperity in Turbulent Times’.
Highlighted strategic consequences of changes driven by leveraging of production, supply chains, trade, connectivity, data and resources.
Also underlined… https://t.co/nNQ7eJkhALpic.twitter.com/Bk4TprYu0L
— Dr. S. Jaishankar (@DrSJaishankar) October 5, 2025