Foreign Minister S. Jaishankar addressed the growing trade disputes between India and the US, specifically concerning tariffs. He stated that any trade agreement must respect India’s ‘Lakshman Rekhas’ and that a ‘shared basis’ is being sought. Jaishankar, speaking at the Kautilya Economic Enclave, acknowledged that several issues exist between India and the US, with some arising from the lack of a finalized trade agreement. He recognized the necessity of reaching a trade understanding with the US, given its status as the world’s largest market, while also underlining that India’s boundaries should be respected.
Jaishankar mentioned that India has issues with the US, partly because of the lack of substantial results in trade talks, leading to tariffs imposed on India. He also addressed a double tariff, deemed highly inappropriate, that targets India’s purchase of fuel from Russia, despite many other nations doing the same, including those with more strained relations with Russia. The relationship between New Delhi and Washington has been tense since former President Trump doubled tariffs on Indian goods and included a 25 percent tariff on India’s purchase of Russian crude oil. However, recent efforts aim at advancing the proposed trade agreement after a phone call between Prime Minister Modi and Trump.
Jaishankar emphasized that a trade understanding with the US is essential because it is the world’s largest market and most countries have already achieved such understanding. He clarified India’s stance: the country is seeking to identify common ground that respects its ‘Lakshman Rekhas.’ These discussions have been underway since March. Jaishankar also said that the strain in the relationship does not affect all dialogues between the two nations.
He asserted that issues exist that need discussion and resolution. He avoided drawing implications from the problems, suggesting that a large portion of the relationship is unaffected, and even stronger in some areas. During his address, Jaishankar observed that the world is undergoing significant transformations, the strategic consequences of which are clear. He pointed out the weakening, and at times disappearance, of international structures and regulations.