Negotiations between India and the US for a bilateral trade agreement figured in a conversation on Monday between secretary of state Marco Rubio and external affairs minister S Jaishankar, who said the two sides want the speedy conclusion of the trade deal.
The phone conversation between Jaishankar and Rubio came about a week after a visit to India by US assistant trade representative Brendan Lynch for discussions on the bilateral trade agreement. The two sides agreed to finalise the first tranche of the agreement by the fall of 2025 at a meeting between Prime Minister Narendra Modi and President Donald Trump in February.
Jaishankar said in a social media post that the trade deal had been part of his conversation with Rubio. “Agreed on the importance of the early conclusion of the Bilateral Trade Agreement. Look forward to remaining in touch,” he said without giving details.
There was no official word from the American side on the conversation.
Jaishankar said he and Rubio also exchanged perspectives on the Indo-Pacific, the Indian subcontinent, Europe, West Asia and the Caribbean.
Trump hit India with 26% customised reciprocal tariffs on April 2 as part of his regime of new levies for trade partners across the world. The so-called “Liberation Day” measures are aimed at balancing trade with countries around the world and boosting manufacturing within America.
{{/usCountry}}Trump hit India with 26% customised reciprocal tariffs on April 2 as part of his regime of new levies for trade partners across the world. The so-called “Liberation Day” measures are aimed at balancing trade with countries around the world and boosting manufacturing within America.
{{/usCountry}}Global financial markets have fallen steadily since Trump’s announcement, and further turbulence was created by his threat on Monday to again increase tariffs on China. Trump’s remarks raised the possibility of another escalation in a trade war that has wiped trillions of dollars from global markets.
Trump’s 10% baseline tariff on all imports into the US took effect on Saturday, and the customised reciprocal duties of up to 50% are set to snap into place on Wednesday.
When Lynch and his team of negotiators visited New Delhi during March 26-29, the two sides finalised the broad contours for negotiations on the bilateral trade agreement. India’s commerce ministry said the two sides discussed increasing market access and reducing tariff and non-tariff barriers.
The commerce ministry has also said the government is “carefully examining the implications” of Trump’s new tariffs and is engaged with industry and exporters to get feedback on their assessment of the levies. The government is also studying opportunities that may arise due to changes in US trade policy.