India and the US are actively negotiating to resolve tariff disputes, with External Affairs Minister S. Jaishankar assuring that trade continues smoothly. Dialogue aims to protect India’s interests while maintaining strong economic ties with its largest trade partner.
India and the United States are actively working to resolve ongoing tariff disputes through sustained dialogue, External Affairs Minister S. Jaishankar said on Sunday. Addressing the Kautilya Economic Conclave (KEC 2025), Jaishankar emphasized that while certain trade issues persist, they are unlikely to disrupt the broader trade relationship between the two nations.
Highlighting the current state of India-US trade, Jaishankar noted that “a large part of our trade with the US remains business as usual” despite the tariff disagreements. The minister attributed these tensions to the inability of both sides to reach a mutually acceptable solution on several key issues.
“We have issues with the US, and a big part of it is because we have not arrived at a landing ground. The inability to reach there has led to tariffs being levied,” Jaishankar explained. The ongoing negotiations particularly focus on the 50 percent tariffs imposed on certain Indian exports, which have become a point of concern for Indian policymakers and industry stakeholders alike.
Jaishankar stressed the importance of maintaining India’s “red lines” while seeking solutions. “There has to be an understanding with the US because it is the number one market and because a lot of the world has reached that understanding,” he said. His remarks underline India’s insistence on protecting its core economic interests even as it navigates diplomatic negotiations with a major global partner.
Despite the imposition of tariffs, Jaishankar reassured stakeholders that the trade between India and the US continues to function smoothly in many areas. “I don’t think this will percolate to every dynamic of trade. Some issues will need to be negotiated, but I would hesitate to read very much more into it than the issues themselves,” he said. This statement reflects India’s broader strategy of compartmentalizing trade issues while ensuring that the overall economic partnership remains resilient.
The minister also addressed the broader challenges tariffs present in the contemporary global trade environment. “When you have a world where the central consideration of trade has become tariffs, please explain to me where comparative advantages and competitive advantages go,” he remarked, pointing to the disruption that unilateral trade barriers can create for international markets.
Energy trade has been another area affected by additional tariffs, according to Jaishankar. He noted that ongoing negotiations aim to resolve these challenges, ensuring that critical sectors like energy remain stable and predictable for both countries.
Beyond the US, Jaishankar highlighted India’s proactive engagement in trade agreements with several Asian economies. “And in many cases, because of the supply chain nature, they have also provided a pathway for China. Our focus should be on FTAs with economies that are not competitive,” he said. This approach reflects India’s strategic emphasis on negotiating free trade agreements (FTAs) that enhance economic growth while minimizing exposure to overly competitive markets that may undermine domestic industries.
Jaishankar’s remarks at KEC 2025 provide a comprehensive overview of India’s trade priorities and its measured approach to resolving international trade tensions. By balancing firm economic principles with diplomatic engagement, India aims to safeguard its interests while maintaining strong ties with the US, one of its most significant trade partners.
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As negotiations continue, both nations appear committed to finding mutually beneficial solutions, ensuring that tariff issues do not escalate into broader trade conflicts. India’s focus remains on constructive dialogue, economic resilience, and strategic engagement with global markets to sustain growth and international partnerships.
