India–US: Negotiations Continue, New Tariffs Threaten
India says trade talks with the US are ongoing, but New Delhi has a “line” to maintain—days before an additional wave of tariffs is set to go into effect. Indian goods are facing tariffs of up to 50% related to purchases of Russian oil: 25% are already in effect, with the remaining 25% scheduled to begin August 27. A US trade delegation's visit to New Delhi from August 25–29 has been canceled, diminishing the chances of a tariff reprieve.
Jaishankar emphasized protecting farmers and small producers as India's red line. Previous negotiations failed because India refused to open up its agriculture and dairy sectors. Bilateral trade between the two economies—the world's largest and fifth-largest—is over US$190 billion.
In terms of impact, Capital Economics estimates that if the full tariffs are implemented and persist, India's GDP growth could be reduced by 0.8 percentage points in 2025 and 2026, reducing India's attractiveness as a global manufacturing base.
Politically, Jaishankar called President Donald Trump's policy-making style "unusual" and highlighted the inconsistency of US concerns about Russian oil—why China and the European Union aren't receiving similar treatment. India insists its energy and trade policies are in the national interest. (ayu)
Source: Newsmaker.id
