India’s trade negotiations with Washington are continuing but there are lines that New Delhi needs to defend, the country’s foreign minister says, just days before hefty additional US tariffs are due to hit.
Indian goods face additional US tariffs of up to 50 per cent, among the highest imposed by Washington, due to its increased purchases of Russian oil.
A 25 per cent tariff has already come into effect, while the remaining 25 per cent is set to be enforced from August 27.
A planned visit by US trade negotiators to New Delhi from August 25-29 has been called off, dashing hopes that the levies may be lowered or postponed.
“We have some red lines in the negotiations, to be maintained and defended,” Indian Foreign Minister Subrahmanyam Jaishankar said at an Economic Times forum event in New Delhi, singling out the interests of the country’s farmers and small producers.
India-US trade talks collapsed earlier in 2025 due to India not agreeing to open its vast agricultural and dairy sectors.
Bilateral trade between the world’s largest and fifth-largest economy is worth more than $US190 billion ($A293 billion).
“It is our right to make decisions in our national interest,” Jaishankar said.
Analysts at Capital Economics said on Friday that if the full US tariffs came into force, the hit to India’s economic growth would be 0.8 percentage points both in 2025 and 2026.
“The longer-term harm could be even greater as a high tariff could puncture India’s appeal as a global manufacturing hub.”
The Indian minister described US President Donald Trump’s policy announcements as unusual.
“We have not had a US president who conducts his foreign policy so publicly as the current one and (it) is a departure from the traditional way of conducting business with the world,” Jaishankar said.
He also said Washington’s concern over India’s Russian oil purchases was not being applied to other major buyers such as China and European Union.
“If the argument is oil, then there are (other) big buyers. If argument is who is trading more (with Russia), than there are bigger traders,” he said.
Russia-European trade was bigger than India-Russia trade, he said.
The minister also said India’s purchases of Russian oil had not been raised in earlier trade talks with the US before the public announcement of tariffs.
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