On Monday, Indian External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio held talks to advance the ongoing India-US Bilateral Trade Agreement (BTA) negotiations. Their conversation followed a major development—US President Donald Trump’s announcement of sweeping new tariffs, including a 26% duty on all Indian imports to the US.
The new tariffs are being implemented in two phases: a 10% base rate started on April 5, and the remaining 16% will come into effect on April 9. These sudden changes have shaken global financial markets, with India’s Sensex and Nifty plunging over 3% on Monday.
A statement from the US State Department noted that the two leaders discussed “reciprocal tariffs” and the need to build a “fair and balanced trade relationship.” Jaishankar confirmed the call on social media platform X, stating the two agreed on pushing for an early resolution of the BTA and maintaining regular contact.
The latest round of BTA negotiations took place in Delhi between March 26 and 29, where key elements were outlined for future discussions. Both sides remain committed to finalizing the first phase of the agreement within the year.
The new tariff policy has sparked anxiety worldwide. President Trump’s broader tariff plan involves a base 10% duty on all imports, with added tariffs on selected countries, including allies. While the global response has included concerns and market volatility, India has not yet imposed retaliatory tariffs.
Indian officials are now prioritising the finalisation of the BTA in hopes of prompting the US to reconsider or lift the imposed tariffs. Such an agreement could also allow greater US access to Indian markets.
The Indian Commerce Ministry has stated it is closely analyzing the new US tariffs. Meanwhile, a report by the Global Trade Research Initiative (GTRI) estimates that India could lose $5.76 billion in exports this year due to the new 26% tariff regime. The additional duties will affect most Indian exports, sparing only select sectors such as pharmaceuticals, semiconductors, and some energy-related goods.
