Jaishankar: India Aiming for Trade Agreement with US Amid Tariff Concerns
On Wednesday, External Affairs Minister S. Jaishankar addressed the ongoing trade challenges between India and the United States, particularly in light of the new tariffs implemented by President Donald Trump. He stated that the full consequences of these tariffs are still unclear, but India plans to focus on finalizing a bilateral trade agreement with the US by this coming fall.
Jaishankar’s remarks were among the first detailed responses to the tariffs, which have affected several countries, including India. He noted that India might be the only nation currently working with the US to establish a trade deal since Trump began his second term in office.
The minister’s comments followed the immediate implementation of Trump’s tariffs, which caused concerns about trade disruptions and a potential global economic slowdown. India is maintaining a careful approach, actively engaging with the US administration on the proposed trade agreement.
“I can’t predict the impact right now because we simply don’t know,” Jaishankar said during the News18 Rising Bharat Summit. He emphasized India’s commitment to open and constructive dialogue with the US. “We decided to start talks early and aim to negotiate a bilateral trade agreement by this autumn,” he added.
After discussions between Prime Minister Narendra Modi and Trump in February, both nations agreed to begin negotiations for the trade agreement by fall 2025. Jaishankar expressed pride in India’s unique position, stating, “We are likely the only country that has reached such an understanding since Trump’s second term began.”
He highlighted that countries worldwide are crafting their strategies for dealing with the US, and India’s aim is clear: to secure a trade pact. “Our strategy has a specific goal—to find a way to conclude a bilateral trade agreement,” he remarked, noting that this has long been a desire for India.
While addressing the current circumstances, Jaishankar pointed out that previous efforts to negotiate a trade deal during Trump’s first term fell short. He also referenced discussions held during President Biden’s administration, which led to the formation of the Indo-Pacific Economic Framework for Prosperity, an initiative aimed at enhancing cooperation in areas like clean energy and digital trade.
Jaishankar concluded by reaffirming India’s objective to work toward a bilateral agreement, viewing it as a positive and long-term goal despite the challenges posed by the recent tariffs.
