India and the United States are actively working to resolve ongoing tariff issues through dialogue, External Affairs Minister S. Jaishankar said on Sunday, expressing confidence that the challenges will not affect the broader trade relationship between the two nations.
Speaking at the Kautilya Economic Conclave (KEC 2025), Jaishankar stated that a large portion of India’s trade with the US remains “business as usual” despite current differences. He noted that the ongoing tensions largely arise from the inability of both sides to reach a common ground on several issues.
“We have issues with the US and a big part of it is because we have not arrived at a landing ground. The inability to reach there has led to tariffs being levied,” Jaishankar explained. The minister further revealed that negotiations are ongoing regarding the 50 per cent tariffs imposed on Indian exports.
While discussing the path forward, Jaishankar emphasized that India’s “red lines have to be respected” and that solutions require mutual understanding. “There has to be an understanding with the US because it is the number one market and because a lot of the world has reached that understanding,” he said.
Despite the tariffs, the minister underlined that trade between the two countries is largely continuing smoothly. “I don’t think this will percolate to every dynamic of trade. Some issues will need to be negotiated, but I would hesitate to read very much more into it than the issues themselves,” he added.
Jaishankar also highlighted the broader challenges that tariffs pose for policymakers in today’s global trade environment. “When you have a world where the central consideration of trade has become tariffs, please explain to me where comparative advantages and competitive advantages go,” he remarked.
The minister acknowledged that additional tariffs have been imposed on India’s energy trade but assured that both nations are engaged in active negotiations to resolve these matters.
He further noted that India has successfully signed trade agreements with several Asian countries, though some of these economies are highly competitive. “And in many cases, because of the supply chain nature, they have also provided a pathway for China. Our focus should be on FTAs with economies that are not competitive,” Jaishankar said.
The minister’s comments come at a time when India-US trade relations are under close scrutiny, with both sides working to balance tariff disputes while maintaining strong economic ties. Authorities remain committed to resolving outstanding issues through ongoing dialogue and negotiation, ensuring that overall bilateral trade continues without major disruptions.
