Daijiworld Media Network - New Delhi

New Delhi, Oct 5: External affairs minister S Jaishankar on Sunday expressed confidence that ongoing tariff disagreements between India and the United States will not derail the overall trade relationship, stressing that both nations are engaged in active dialogue to resolve the matter.

Speaking at the Kautilya Economic Conclave (KEC 2025), Jaishankar said that despite certain friction points, much of India’s trade with the U.S. continues unaffected. He attributed the tariff issues to a lack of consensus on key trade matters, noting that until both sides reach common ground, levies will remain a sticking point.

Negotiations are currently underway over the steep 50% tariffs imposed on some Indian exports, particularly in the energy sector. Jaishankar made it clear that while India is open to discussions, its “red lines” must be respected, citing the U.S. as a vital trade partner.

He pushed back against any broader interpretation of the issue, saying, “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.”

Highlighting the global trend of tariff-driven trade strategies, he questioned how this shift impacts traditional economic principles like comparative and competitive advantage. Jaishankar emphasized that India is also recalibrating its trade priorities, signing agreements with several Asian nations while being cautious of economies that heavily overlap with Chinese supply chains.

The message was clear: while challenges remain, India is navigating them with a mix of strategic caution and diplomatic engagement, aiming to protect its interests while keeping vital partnerships like the one with the U.S. intact.