India and the US are now in serious talks after US President Donald Trump announced a new 10% tariff on all imports. India is hit harder, facing a 26% tariff under this new rule. These new taxes have affected markets across the world and caused concern among US allies, including India.
On Monday, Indian External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio had a phone call to discuss the issue. The US State Department said they spoke about the “impact of newly imposed American tariffs on Indian exports” and how to move forward with a “fair and balanced trade relationship”.
Even though India is affected by these tariffs, it has not taken any action in return. A government official said that India is focusing on talks with the US to finalise a bilateral trade agreement. This deal has been delayed for years but may finally be ready by autumn 2025.
Leaders push for quick progress
Jaishankar posted on X that he discussed the issue with Rubio and “highlighted the need for urgency on the trade front”. The US State Department also said both countries “reaffirmed their commitment to making progress toward a fair and balanced trade relationship” and talked about “U.S. reciprocal tariffs on India.”
They also talked about global security and humanitarian efforts. This included topics like safety in the Indo-Pacific region, problems in West Asia and Europe, and humanitarian help in places like the Caribbean and the Indian subcontinent.
Rubio recently spoke at NATO headquarters in Brussels, where he said countries like India and China should do more to help during disasters. After strong earthquakes hit Myanmar, he said, “Rising powers must shoulder more responsibility.”
Earlier this year, in February, both India and the US agreed to work on a full trade deal to fix tariff problems and improve economic cooperation.
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