India-US Trade Talks: New Delhi Vows to Protect ‘Red Lines’ – How Will Washington React?

India’s Foreign Minister Subrahmanyam Jaishankar said on Saturday that trade talks with the U.S. are ongoing, but New Delhi has certain “red lines” it must defend, just days before high U.S. tariffs are set to take effect.

Indian goods are facing additional U.S. tariffs of up to 50% because of India’s increased purchases of Russian oil. A 25% tariff is already in effect, while the remaining 25% will be enforced from August 27. A planned visit by U.S. trade negotiators to New Delhi from August 25-29 has been canceled, reducing hopes that the tariffs might be lowered or delayed.

Indian Foreign Minister: ‘National Interest’ is Key

Speaking at an Economic Times forum in New Delhi, Jaishankar emphasized that India will protect the interests of farmers and small producers in the talks. He said, “It is our right to make decisions in our national interest.” Earlier this year, India-U.S. trade discussions broke down because India refused to open up its large agricultural and dairy sectors. Currently, bilateral trade between the two countries is over $190 billion.

Analysts at Capital Economics warned that if the full U.S. tariffs are implemented, India’s economic growth could fall by 0.8 percentage points this year and next. The longer-term impact could be worse, as high tariffs may reduce India’s attractiveness as a global manufacturing hub.

 India Points Out ‘Unusual’ Policy by Donald Trump

Jaishankar also criticized U.S. President Donald Trump’s approach, calling his policy announcements “unusual.” He said, “We have not had a U.S. president who conducts his foreign policy so publicly… it is a departure from the traditional way of conducting business with the world.”

The minister pointed out that the U.S. concern over India’s Russian oil imports was not being applied to other major buyers like China or the European Union. “If the argument is oil, then there are bigger buyers. If the argument is who is trading more, there are bigger traders,” he said, noting that Russia-Europe trade exceeds India-Russia trade.

Jaishankar also added that India’s purchases of Russian oil were never raised in previous trade discussions with the U.S. before the public tariff announcement.

Also Read: Trump Hints at Possible New Levies of 20–25% Tariffs on Indian Imports Amid US-India Trade Talks