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'No one can...': Ex-bureaucrat says India has 'walked away' from US trade talks
US Treasury Secretary Scott Bessent had also said that Washington thought they'd have a deal with India in May or June as one of the 'earliest deals'.
Former finance secretary Subhash Garg recently reacted to US Treasury Secretary Scott Bessent's remarks on why a 50 per cent tariff was imposed on India, saying that New Delhi has already "effectively walked away" from trade talks with Washington.
Last week, as the 50 per cent tariff took effect on Indian goods, Bessent clarified that the high rates are "not just over (India's purchase of) Russian oil", but also over how long-drawn the ongoing talks for a trade deal have been.
He had told Fox Business, "I'd thought we'd have a deal in May or June; that India could be one of the earliest deals. But they kind of tapped us along."
However, Bessent also said, "India is the world's largest democracy. The US is the world's largest economy. I think at the end of the day we will come together."
Garg, meanwhile, said that India has already "effectively walked away" from trade talks, given US President Donald Trump's unilateral tariffs on the country.
"No one can trade at those tariff levels. But India should never formally close the door; one must always hope sanity prevails at some point," Garg said in an interview with NDTV.
Ahead of his remarks, Bloomberg reported that India and the US are keeping their informal communication open amid the trade tensions caused by Trump's 50 percent tariff imposition.
A top official from the Ministry of Commerce and Industry, on the condition of anonymity, told Bloomberg that while trade talks have been postponed, the channel remains open for defence, foreign policy and other critical issues.
Garg also said that India is well within the global price-cap framework in connection with its purchase of Russian oil. He warned that backing off Russian crude purchases would "only embolden the US, not serve India's interests".
HT had earlier reported, citing people familiar with the matter, that while India believes Trump's move to impose doubled tariffs is "unjustified", New Delhi has kept the door open for negotiations aimed at a trade deal.
They added that India's response to the Trump administration's actions has been restrained and responsible. They said that contacts between New Delhi and Washington are continuing with the aim of reaching an understanding on the matter and ultimately agreeing on a trade deal.
Subhash Garg also urged India to reconsider its own "rigid" negotiating position, especially in terms of agricultural and consumer goods.
"We've been too inflexible on things like GM oils or dairy. Farmers' interests are not really hurt by these imports. It's about consumer preference, and that should come with a choice, not bans," he told the media outlet.
Subhash Garg served as the finance secretary of India for a span of four months in 2019. He also held the office of economic affairs secretary of India for two years, from 2017 to 2019.
Earlier this month, Prime Minister Narendra Modi asserted that India would not compromise on the interests of its farmers, saying that the country is ready to pay any price for it.
“The interests of our farmers are our topmost priority. India will never compromise the interests of its farmers, its cattle rearers and fisherfolk,” Modi said.
He added, “I know I’ll have to pay a big price for this personally, but I’m prepared. India today is prepared to protect its farming community at any cost.”
Last week, PM Modi repeated his assertion and added that "the pressure on us may increase, but we will bear it all".
According to the people cited in the HT report mentioned above, they also clarified that the Indian side will not compromise on the interests of its farmers, small producers and micro, small and medium enterprises (MSMEs) in all the contacts with the US side.
"We believe issues will be resolved in negotiations, but there will be no going back on our red lines," they said.
US court rules Trump tariffs 'illegal'
In a setback for Donald Trump, a divided US appeals court ruled on Friday that most of the tariffs on several countries are illegal.
However, the US Court of Appeals for the Federal Circuit allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the Supreme Court.
In response, Trump affirmed that all tariffs imposed on the countries will remain in effect, describing the ruling by a "highly Partisan Appeals Court" incorrect".
