Trade Talks Between India-US Far From Being Final, Says MEA S Jaishankar: Five Key Takeaways

Trade Talks Between India-US Far From Being Final, Says MEA S Jaishankar: Five Key Takeaways

The External Affairs Minister S Jaishankar on Thursday said that India-US trade talks are far from finalized, in light of the US President Donald Trump's confidence in reaching a final deal soon.

What Did S Jaishankar Say?

Jaishankar told ANI that negotiations between the two nations are ongoing and urged against premature conclusions, as all deals must be finalized.

“US trade talks have been going on, negotiations have been going on. In fact, we have a team. These are very complicated negotiations. They are very intricate. Nothing is decided till everything is. Any trade deal has to be mutually beneficial. Any trade deal has to work for both the countries. That would be our expectation from the trade deal, and until that is done, I think any judgment on it would be premature.”

US-India Trade Talk Key Takeaways

Zero-Tariffs: Despite India being the highest tariff partner, Trump claimed that they are willing to offer zero tariffs.

“India is the highest one of the tariff nations in the world. It's very hard to sell into India. And they've offered us a deal where we're basically they're willing to literally charge us no tariff.”

Jaishankar commented that no deal was finalized until all deals were finalized.

US-Manufactured Goods: Further adding to this, Trump claimed that he had denounced Apple building manufacturing units in India in line with his ‘America First Policy’. At the same time, in a diplomatic statement, Jaishankar stated that he hopes for a mutually beneficial deal that works for both countries.

"Tim, look, we've treated you really good. We put up with all the plants that you built in China for years. Now you got to build us. We're not interested in you building in India. India can take care of themselves."

Trump's statements showcase how he plans on using Apple's building plants in India as a tool of leverage to sway trade deals with India.

Trade Instead Of War: With several developments in Operation Sindoor and rising tensions between India and Pakistan, Trump noted that they should trade instead of going to war, suggesting trade with the US would be beneficial for India and Pakistan.

Pharmaceutical Leeway: Amongst tariffs on goods imported by the US, the pharmaceutical products saw temporary exemptions benefiting Indian exporters. But uncertainty lies for them as Trump signaled huge tariffs if pharma companies do not come “roaring back,” to the country as predicted, as reported by Reuters.

Automobile Sensitivity: Trump has placed 70 per cent tariffs on passenger vehicles and a general tariff of 25 per cent on all auto and auto parts, creating hardships for the Indian automobile exporters.  This was done after revoking India’s preferential trade status under the Generalised System of Preferences.

India And US Tariffs: What Has Happened So Far?

After the imposition of a 26% discount on April 2nd, 2025, reciprocal tariffs in comparison to India's 52% on US goods, Trump stated, “We're not even a top 30 in India because the tariff is so high.” Jaishankar then remarked on the complexity and intricacies involved in trade deals.

On April 9th, a 90-day pause on tariffs was announced. For the United States as well as the Trump administration the 90-day pause has proven to be beneficial, as countries like India, Japan, and South Korea have flocked to broker trade deals after the reciprocal tariffs. Trade talks between the India and the US are “coming along great,” Trump said, but Jaishankar discouraged premature conclusions on trade deals.

Further developments, as per MEA S Jaishankar are still awaited wherein both countries can mutually agree on a trade deal.

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