India says trade talks with U.S. still ongoing despite tariff heat

India’s Foreign Minister Subrahmanyam Jaishankar told reporters in New Delhi on Saturday that trade discussions between India and the U.S. are still ongoing, even as fresh tariffs from Washington are already hitting and more are scheduled to take effect in days.

The comment comes just hours after the U.S. abruptly canceled a major trade delegation visit, originally planned for August 25 through 29, which had been seen as a chance to dial back the tension before the rest of the penalties roll in.

Indian products are now facing U.S. tariffs as high as 50%, some of the biggest trade penalties the Biden or Trump administrations have ever imposed on India. A 25% round has already kicked in, with another 25% set to be enforced on August 27.

The trigger? India’s rising imports of Russian crude, a move that has irritated the White House even though other nations, like China and members of the European Union, are doing the exact same thing on a bigger scale.

Jaishankar said there are non-negotiable issues India will not surrender, and that India’s farmers and small producers are top priority. “We have some redlines in the negotiations, to be maintained and defended,” he said during his speech at the Economic Times forum.

He also made it clear that India isn’t going to let another country tell it what sectors to open or close. “It is our right to make decisions in our ‘national interest,’” he said.

Jaishankar challenges tariff logic, points to hypocrisy

The foreign minister pointed out that U.S. frustration over Indian-Russian trade feels selective. He questioned why Washington is going after India while larger buyers like China and European governments face no similar punishment.

“If the argument is oil, then there are (other) big buyers. If argument is who is trading more (with Russia), then there are bigger traders,” Jaishankar said. He added that Europe’s trade volume with Moscow is higher than India’s, yet only India is being penalized.

Even more confusing, Jaishankar said this oil issue wasn’t even part of earlier trade negotiations with Washington. The tariffs came later, without warning, and the U.S. never raised the matter in official meetings before announcing its penalties.

He also described Trump’s approach to diplomacy as unorthodox: “We have not had a U.S. president who conducts his foreign policy so publicly as the current one and (it) is a departure from the traditional way of conducting business with the world.”

These trade talks had already crashed once this year, when India refused to open its agricultural and dairy sectors to U.S. exporters. That refusal is still in place. And it’s part of the reason a deal is so hard to lock in.

India doesn’t want outside pressure changing policies that affect its food security and job market. Right now, the total annual trade between the two countries is over $190 billion, but that number could take a hit.

U.S. lawmaker downplays drama, says relationship remains strong

On the U.S. side, Republican Congressman Michael Baumgartner tried to cool things down in an interview with NDTV. He said Donald Trump “respects” India and Prime Minister Narendra Modi “a lot”, and believes the situation will work itself out.

“We know President Trump is a dealmaker, and he has a lot of respect for India. He also enjoyed his trip to India very much a few years ago. He values the relationship with PM Modi. I’m very optimistic that it will be worked out,” Baumgartner said.

Baumgartner added that the high tariffs should be seen as pressure between allies, not hostility. “Well, I think sometimes you have to ask more of your friends, and it should really be interpreted, I think, as a sign of respect towards India that America is asking more of India,” he said.

He admitted that India’s side might see it differently but emphasized that the overall ties remain solid. “And so the message I’ve communicated to your leaders is simply that the fundamentals between our two countries are very strong,” Baumgartner said.

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