India seeks ‘early conclusion’ of trade deal with US – foreign minister
New Delhi is in talks with Washington as Donald Trump’s reciprocal tariffs begin to kick in
India is seeking an early conclusion to a bilateral trade deal with the US, Foreign Minister Subrahmanyam Jaishankar said on Monday. This follows US President Donald Trump’s decision to impose tariffs on most countries, including a 26% tariff on Indian exports to the US.
“Agreed on the importance of the early conclusion of the Bilateral Trade Agreement,” Jaishankar posted on X.
Last week, New Delhi said it was assessing the impact of tariffs, adding that it was a “mixed bag.” India has stressed that it will not retaliate against the tariffs, and will instead absorb and adjust to the new trade dynamics to minimize the impact on its exporters, according to local media reports.
Having already initiated a major trade pact with the US, India is well-positioned to weather the effects of the tariffs and maintain a stable trade relationship, analysts believe.
Reuters cited an Indian government official as saying the country is exploring a potential loophole in the US tariff order, which offers a possible exemption for trading partners that address non-reciprocal trade practices. This clause may provide India with a way to mitigate the impact of the tariffs.
The US and India are aiming to complete the first phase of a trade agreement by autumn 2025, which will focus on removing existing trade barriers. Last month, Trump criticized India, China, and the EU for their “very unfair” tariffs.
Good to speak with @SecRubio today.
— Dr. S. Jaishankar (@DrSJaishankar) April 7, 2025
Exchanged perspectives on the Indo-Pacific, the Indian Sub-continent, Europe, Middle East/West Asia and the Caribbean.
Agreed on the importance of the early conclusion of the Bilateral Trade Agreement.
Look forward to remaining in touch.…
India has stated that the imposition of reciprocal tariffs by the US has changed the negotiation dynamics, allowing talks to proceed on an equal basis. As a result, India will no longer be bound by previous US demands to remove subsidies, and will instead seek a more balanced trade agreement, reports suggest.
In a recent statement, Trump claimed that India agreed to significantly reduce its tariffs, following accusations of restrictive trade practices that hinder American companies operating in the country. According to Trump, India’s tariffs will be reduced “way down” after being “exposed” for its protectionist policies.