Indian Foreign Minister Subrahmanyam Jaishankar confirmed on Saturday that trade negotiations with the U.S. remain ongoing, even as tensions escalate over impending tariffs set to take effect this month. The remarks come days before Washington plans to impose additional 25% duties on Indian goods, raising the total tariff burden to 50% in some cases.
The tariffs, partially linked to India's increased purchases of Russian oil, have already seen a 25% levy implemented earlier this year. A second tranche is scheduled for August 27, coinciding with the abrupt cancellation of a planned U.S. trade delegation visit to New Delhi. Analysts at Capital Economics warn full implementation could reduce India's GDP growth by 0.8 percentage points annually through 2024.
"There are lines India needs to defend," Jaishankar stated, referencing stalled talks over U.S. demands to open India's agricultural and dairy sectors. The collapse of negotiations earlier this year left unresolved issues in a bilateral trade relationship valued at over $190 billion.
In a surprise move, U.S. President Donald Trump announced Friday the nomination of close aide Sergio Gor as ambassador to India and special envoy for South and Central Asian affairs. The 38-year-old's appointment comes amid what Jaishankar called Trump's "unusual" public approach to foreign policy, contrasting with traditional diplomatic norms.
Notably, the Indian minister revealed that U.S. officials had not raised concerns about New Delhi's Russian oil imports during prior negotiations before the tariff announcement. As both nations navigate this economic standoff, businesses and investors across Asia are closely monitoring potential ripple effects in regional supply chains and manufacturing hubs.
