India and the US began negotiations on the trade deal following Prime Minister Narendra Modi’s meeting with President Trump in Washington DC in mid-February.
Amid the looming threat of a 26% reciprocal tariff imposed on India by the Donald Trump-led US administration, External Affairs Minister S Jaishankar held key discussions with US Secretary of State Marco Rubio on Monday. During the conversation, both sides emphasised the urgency of finalising a Bilateral Trade Agreement at the earliest.
The trade negotiations between India and the US began following Prime Minister Narendra Modi’s meeting with President Trump in Washington DC in February.
Jaishankar took to X after the conversation, saying, “Good to speak with @SecRubio today. We exchanged views 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 staying in touch.”
The US said the two leader spoke on a host of issues including the reciprocal tariffs and a balanced trade partnership.
“Secretary of State Marco Rubio spoke with Indian External Affairs Minister Subrahmanyam Jaishankar today. The Secretary and External Affairs Minister affirmed the strength of the U.S.-India strategic partnership and discussed opportunities to deepen collaboration in the Indo-Pacific region. They also discussed U.S. reciprocal tariffs on India and how to make progress toward a fair and balanced trade relationship,” the Department of State said in a release.
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.…
— Dr. S. Jaishankar (@DrSJaishankar) April 7, 2025
India-US bilateral trade agreement
The ongoing talks between Indian and US trade teams aim to swiftly conclude a mutually beneficial, multi-sectoral Bilateral Trade Agreement. These discussions are focused on deepening supply chain integration and enabling both nations to expand trade, investment, and technology transfers.
Also Read: China warns of ‘countermeasures’ after Trump’s additional 50% tariff hike threat
Contrary to New Delhi’s hopes of an exemption, the US last week confirmed that it would impose reciprocal tariffs on India. While the 10% baseline tariffs for all countries took effect on April 5, the 26% country-specific tariffs will begin on April 9.
Reports say the purpose of Jaishankar’s conversation with Rubio was to highlight the potential impact these tariffs could have on India.
However, India’s tariffs are lower compared to other Asian countries: 34% on China, 46% on Vietnam, 36% on Thailand, and 32% on Indonesia—nations with strong investment ties to China and increasing integration with Chinese supply chains.
In response to the US decision, India’s Ministry of Commerce and Industry said it is closely evaluating the ramifications of the new tariffs. The ministry is in active discussions with industry stakeholders and exporters to assess the situation and identify any potential opportunities arising from the changes in US trade policy.
The Ministry clarified that the US President’s executive order on reciprocal tariffs imposes additional duties ranging from 10% to 50% on imports from all trading partners. The baseline 10% duty came into effect on April 5, 2025, and the country-specific tariffs will take effect on April 9, 2025.
Also read: Can sweeping US global tariffs ignite a manufacturing surge in India?
