External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio on Monday spotlighted the importance of swiftly concluding the long-pending India–United States bilateral trade agreement, amid growing concerns over Washington’s recent tariff announcements targeting Indian goods.
In their first high-level contact since US President Donald Trump imposed reciprocal tariffs on nearly 50 countries, including India, on 2 April, the two leaders held a telephonic conversation, during which the proposed trade deal featured prominently.
“Good to speak with @SecRubio today. Exchanged perspectives on the Indo-Pacific, the Indian subcontinent, Europe, Middle East/West Asia and the Caribbean,” Jaishankar posted on social media platform X following the call.
“Agreed on the importance of the early conclusion of the bilateral trade agreement. Look forward to remaining in touch,” he added.
Both sides are currently engaged in negotiations over a comprehensive bilateral trade pact. The proposed agreement gained momentum following Prime Minister Narendra Modi’s visit to Washington DC in February, where he held discussions with President Trump. Subsequently, both nations agreed to work towards finalising the first tranche of the deal by autumn 2025.
Last month, US Assistant Trade Representative Brendan Lynch visited India to meet with Indian officials, aiming to iron out differences and firm up the contours of the agreement.
Trump's recent announcement of reciprocal tariffs aligns with his administration’s “America First” trade policy, which seeks to reduce the US trade deficit and promote domestic manufacturing. As part of this approach, a 26 per cent reciprocal tariff was announced specifically on Indian goods, citing high import duties levied by New Delhi on American products.
The newly imposed 26 per cent levy is in addition to the existing tariffs already faced by Indian exports in the US market, raising concerns among Indian exporters and trade analysts about competitiveness and market access.
During the phone call, Jaishankar and Rubio also exchanged views on a wide range of global developments, including regional dynamics in the Indo-Pacific, the Indian subcontinent, Europe, the Middle East and the Caribbean — reflecting the strategic depth of the bilateral partnership.
While officials from both sides continue to work towards a breakthrough on the trade front, the timing of the conversation between Jaishankar and Rubio signals intent from New Delhi and Washington to prevent tariff tensions from overshadowing broader strategic and economic cooperation.
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