India’s Foreign Minister Subrahmanyam Jaishankar said Saturday that trade negotiations with the United States are continuing, but New Delhi will defend certain “red lines,” just days before significant additional U.S. tariffs are set to take effect.
Indian exports face new U.S. tariffs of up to 50%, among the highest imposed by Washington, following India’s increased purchases of Russian oil. A 25% tariff is already in effect, with the remaining 25% scheduled for August 27, News.Az reports, citing Reuters.
A planned visit by U.S. trade officials to New Delhi from August 25-29 has been canceled, dimming hopes that the tariffs might be reduced or postponed. Speaking at an Economic Times forum in New Delhi, Jaishankar emphasized protecting the interests of Indian farmers and small producers.
“Some red lines in the negotiations must be maintained and defended,” he said. “It is our right to make decisions in our national interest.”
Earlier this year, India-U.S. trade talks faltered over India’s reluctance to open its agricultural and dairy sectors. Bilateral trade between the two countries exceeds $190 billion.
Analysts at Capital Economics warned that if the full tariffs are enforced, India’s economic growth could take a 0.8 percentage point hit this year and next. Long-term effects could further weaken India’s appeal as a global manufacturing hub.
Jaishankar also described U.S. President Donald Trump’s approach to foreign policy as “unusual,” noting that Washington’s concerns over India’s Russian oil purchases were not applied to other major buyers such as China or the European Union.
“If the argument is oil, there are other big buyers. If the argument is trade with Russia, there are bigger traders,” he said, pointing out that Russia-Europe trade exceeds India-Russia trade.
He added that India’s oil purchases had not been raised in prior trade discussions before the public announcement of tariffs.
