India and US Negotiate ‘Fair and Balanced’ Trade Deal, Tackling Tariffs

External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio held a telephonic conversation on Monday to discuss the effects of recently imposed US tariffs on Indian exports. The US State Department stated that the call focused on exploring avenues for advancing a “fair and balanced trade relationship.”

The discussion followed US President Donald Trump’s sweeping decision to impose a 10% baseline tariff on all imports entering the United States. Notably, India now faces a steep 26% tariff under this new regime: a move that has unsettled global markets and raised concerns among key US allies and trade partners.

Focus on Trade Agreement Over Retaliation

Despite the sharp increase in tariffs, India has refrained from retaliatory measures. According to an Indian official speaking over the weekend, New Delhi is prioritising negotiations with Washington to finalise a long-delayed Bilateral Trade Agreement, expected by autumn 2025.

Jaishankar confirmed the call via microblogging platform X: “Good to speak with @SecRubio today. Exchanged perspectives on the Indo-Pacific, the Indian Sub-continent, Europe, the 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.”

The US State Department echoed the sentiment, adding that both sides “reaffirmed their commitment to making progress toward a fair and balanced trade relationship” and discussed “U.S. reciprocal tariffs on India.”

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Geopolitical and Humanitarian Priorities

Beyond trade, the leaders exchanged views on a broad range of geopolitical issues. These included strategic developments in the Indo-Pacific, tensions in West Asia, evolving challenges across Europe, and humanitarian responses in regions such as the Caribbean and Indian subcontinent.

During a recent speech at NATO headquarters in Brussels, Secretary Rubio called upon emerging global powers like India and China to take greater responsibility in global humanitarian efforts. Referring to the devastation caused by recent earthquakes in Myanmar, he emphasised the importance of international solidarity, noting that “rising powers must shoulder more responsibility.”

Conclusion

The conversation between Jaishankar and Rubio signals a critical moment in India–US relations, highlighting a shared commitment to resolving trade tensions and cooperating on global challenges. As discussions over the Bilateral Trade Agreement continue, both nations aim to navigate economic uncertainty while strengthening their strategic partnership.

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