In the wake of President Donald Trump's recent announcement of a sweeping 10% baseline tariff on all U.S. imports, which has escalated market instability and raised alarms among key allies, India and the United States are intensifying efforts to address the fallout. The new tariffs, which include a hefty 26% rate on Indian imports, have sparked a flurry of diplomatic talks aimed at mitigating their impact on trade relations.
On Monday, India’s External Affairs Minister S. Jaishankar and U.S. Secretary of State Marco Rubio held a critical phone conversation to discuss the effects of these newly imposed tariffs on Indian exports and explore avenues for a “fair and balanced trade relationship.” According to a statement from the U.S. State Department, both leaders emphasized the need for progress on trade issues and reaffirmed their commitment to resolving tensions over the U.S. tariff regime.
This discussion comes just days after Trump’s announcement of the tariffs, which have rattled global markets and provoked concern among major trading partners. Despite the tariff hike, which has particularly targeted India, the Indian government has opted against retaliatory measures for the time being. Indian officials are instead focusing on ongoing negotiations for a long-awaited Bilateral Trade Agreement, expected to be finalized by autumn 2025.
Jaishankar confirmed the conversation on social media platform X, stressing the urgency of addressing trade concerns. The U.S. State Department further noted that both sides discussed "U.S. reciprocal tariffs on India," signaling continued efforts to resolve tariff-related issues.
Beyond trade, Jaishankar and Rubio also exchanged views on a broad range of geopolitical concerns. These included security dynamics in the Indo-Pacific, tensions in West Asia, and evolving challenges in Europe, as well as humanitarian efforts in the Caribbean and Indian subcontinent. Rubio, during a recent speech at NATO headquarters in Brussels, had called on rising powers like India and China to contribute more to global humanitarian efforts, particularly in light of recent devastating earthquakes in Myanmar.
Earlier this year, India and the U.S. had agreed to work toward a comprehensive trade pact aimed at addressing tariff disputes and deepening economic cooperation between the two democracies. As the global economic landscape remains in flux, both nations are looking to navigate these challenges through diplomacy and strengthened bilateral ties.
(This story is published from a syndicated feed)