Trump tariffs: S Jaishankar says ‘trade understanding’ with US must respect India's ‘red lines’

External Affairs Minister S Jaishankar said on Sunday that there "has got be" a trade understanding with the United States (US) and that it must respect India's "red lines."

Speaking at the Kautliya Economic Forum in New Delhi on Sunday, Jaishankar said, “...whatever happens at the end of the day, there has got to be a trade understanding with the United States.”

"There has to be one because it is the world's largest market but also because much of the world has reached those understandings. But it has to be an understanding where our bottom lines, our red lines are respected," Jaishankar was quoted by news agency ANI as saying.

Jaishankar stated that India and the US had yet to "reach a landing ground" in ongoing trade negotiations, while mentioning US President Donald Trump's 50 percent tariff on Indian goods.

'Unfair' tariffs

The external affairs minister also addressed the volatile global environment, describing the coming years as a test of resilience for all nations.

"Today, we have issues with the United States ... that we haven't yet arrived at a landing ground in our trade discussions. In addition, there are certain tariffs being levied on us, which we have publicly said are unfair," said Jaishankar.

"In addition, there is a second tariff… which has picked on us for sourcing energy from Russia. And of course, there are other countries that have done so, including countries that, right now, have a far more antagonistic relationship with Russia than we do," Jaishankar said.

He added, "I'm not minimising the issues. But I don't think we should take it to a point as though this is going to percolate to every dimension of the relationship."

He admitted there are "problems" and "issues".

"There are problems, there are issues, nobody is in denial of it. Those issues need to be negotiated and discussed and resolved, which is exactly what we are trying to do. But I would really sort of hesitate to read very much more into it," Jaishankar said in his remarks while responding to questions from the moderator, N K Singh.

"I deal in a world of realities, and my reality right now is at 25 per cent and 25 per cent of a 50 per cent tariff, and that is what right now we are negotiating," Jaishankar said.

"So, whatever happens at the end of the day there has got to be a trade understanding with the United States...But it has to be an understanding where our bottom lines, our red lines are respected," he added.

Trump tariffs on India

Terming the trade relations "one-sided", US President Donald Trump slapped 50 per cent tariffs on India, citing the country's crude oil import from Russia, which is fueling the war in Ukraine.

The new reciprocal tariff rates by the US Customs and Border Protection (CBP) are in effect from August 27.

Emphasising the need to have a common consensus, Jaishankar stated, "In any agreement, you know, there are things you can negotiate and there are things you can't."

"And I think we are pretty clear about that, and we have to find that landing ground. And that's been the conversation really, which has been going on since March," he added.

Goyal's high-level trade visit

Last month, Commerce and Industry Minister Piyush Goyal concluded his high-level trade visit, which the ministry described as 'positive.'

The Ministry stated that both sides have agreed to accelerate efforts toward an "early and mutually beneficial conclusion" of the proposed trade pact.

(With inputs from ANI)