New Delhi / Washington, April 2025 – As global markets reel from the economic aftershocks of renewed Trump-era tariffs, India and the United States are intensifying their efforts to finalize an early bilateral trade deal.
In a high-level discussion, External Affairs Minister S. Jaishankar and his US counterpart reaffirmed their commitment to overcoming trade hurdles and enhancing strategic economic cooperation.
Urgency Amid Global Trade Tensions
The talks come at a time when Donald Trump’s tariff policies have rattled global supply chains, triggering market instability and investor anxiety. Both nations emphasized the urgency of building a resilient trade framework to counter the fallout of escalating tariffs.
Focus on Technology, Agriculture, and Pharma
Discussions centered around removing barriers in key sectors including technology transfer, agricultural exports, pharmaceutical approvals, and digital trade. The Indian side emphasized the need for predictable market access, while the US expressed interest in expanding its footprint in India’s tech and defense sectors.
Jaishankar Calls for “Balanced Trade Partnership”
During the meeting, S. Jaishankar stated that a swift and mutually beneficial agreement would serve as a buffer against global protectionist trends. He highlighted India’s willingness to work on key deliverables that address concerns from both sides.
US Emphasizes Long-Term Strategic Ties
The US Secretary of State underlined the importance of the Indo-Pacific alliance, saying that deeper economic ties with India are crucial for regional stability and economic security. A trade deal, he noted, would be a cornerstone in reinforcing the growing India-US strategic partnership.
Tariffs Disrupt Global Markets
The push for the early deal comes just days after global markets witnessed a massive sell-off, with trillions wiped out in investor wealth. The imposition of new tariffs by former President Donald Trump, citing unfair trade practices, has sparked backlash and fears of a global trade war.
Next Steps
Both sides agreed to fast-track negotiations, aiming for a preliminary framework to be outlined in the coming months. Officials from the Ministry of Commerce and the US Trade Representative’s office are expected to resume formal talks in May 2025.
