U.S. Secretary of State Marco Rubio and Indian Foreign Minister S. Jaishankar held talks on tariffs and trade cooperation.
- India unlikely to retaliate against Trump’s new 26% tariff as talks for a trade deal continue.
- Both sides agreed on the urgency of finalizing a Bilateral Trade Agreement.
- The U.S. aims to build a “fair and balanced trade relationship” with India amid global tariff hikes.
Rubio and Jaishankar Hold Talks to Resolve Tariff Issues and Accelerate Trade Deal
In a crucial diplomatic exchange, U.S. Secretary of State Marco Rubio and Indian Foreign Minister Subrahmanyam Jaishankar held discussions on Monday focused on the escalating tariff tensions and the urgent need for a fair and balanced trade relationship between the two nations.
The talks follow U.S. President Donald Trump’s announcement last week of a sweeping 10% baseline tariff on all imports into the United States. The move includes a targeted 26% tariff on Indian goods, adding strain to bilateral trade dynamics. The policy shift has rattled global markets and left several U.S. allies, including India, seeking clarity.
Despite the pressure, an Indian government official confirmed over the weekend that India does not plan to retaliate against the new tariffs, citing constructive dialogue and progress toward a trade agreement with Washington.
In a social media post on Monday, Jaishankar confirmed the high-level call with Rubio and reiterated India’s focus on reaching a resolution:
“Agreed on the importance of the early conclusion of the Bilateral Trade Agreement. Look forward to remaining in touch.”
The U.S. State Department echoed this sentiment, noting that the two leaders discussed reciprocal tariffs and emphasized strengthening economic ties:
“They also discussed U.S. reciprocal tariffs on India and how to make progress toward a fair and balanced trade relationship,” the department said in an official statement.
The outcome of these talks could significantly influence the trajectory of India-U.S. trade relations and shape investor sentiment in the region. With both governments showing restraint and commitment to dialogue, analysts remain cautiously optimistic about the prospect of a near-term agreement.
Market participants are watching closely, especially as India’s key export sectors — including pharmaceuticals, information technology services, and textiles — could be affected by prolonged tariff barriers.
As trade discussions continue, stakeholders from both economies are hoping for a swift and mutually beneficial resolution that restores confidence in the global trading system.
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