New Delhi/Washington: Trade relations between India and the United States have entered a tense phase after Washington imposed a 50% tariff on Indian goods, a move described as “unjustified” by New Delhi. While US Treasury Secretary Scott Bessent said he had hoped India would be “one of the earliest deals” by May or June, he admitted that talks have dragged on. “India is the world’s largest democracy, the US is the world’s largest economy. At the end of the day, we will come together,” he told Fox Business.
Former finance secretary Subhash Garg, however, believes India has already “effectively walked away” from the trade negotiations. “No one can trade at those tariff levels. But India should never formally close the door; one must always hope sanity prevails,” he told NDTV. Garg added that India is operating well within the global price-cap framework on Russian crude and warned that backing off would “only embolden the US.”
Modi: Farmers’ Interests Non-Negotiable
Amid the tariff standoff, Prime Minister Narendra Modi has doubled down on India’s commitment to protecting its farmers. “The interests of our farmers are our topmost priority. India will never compromise, no matter the price,” he said earlier this month. Modi also acknowledged that international pressure could intensify, but insisted that “India will bear it all.” Officials quoted in a Hindustan Times report reiterated that while India is open to dialogue, its “red lines” — safeguarding farmers, small producers, and MSMEs — will not be compromised.
Room for Dialogue, but With Limits
Despite the tariff escalation, both sides are keeping informal communication channels open on trade, defence, and foreign policy. A senior Commerce Ministry official told Bloomberg that negotiations are paused but not shut down. Garg, meanwhile, urged India to reconsider its rigid stance on consumer and agricultural imports such as dairy and GM oils, suggesting more flexibility could benefit consumers without harming farmers.
US Court Declares Tariffs ‘Illegal’
In a fresh twist, a US appeals court ruled that most Trump-era tariffs are illegal, though it allowed them to remain in force until October 14, giving the Trump administration time to appeal to the Supreme Court. Trump responded defiantly, calling the decision of the “highly partisan appeals court” incorrect, while affirming that his tariffs would remain in place.