India’s External Affairs Minister S. Jaishankar has recently addressed the current state of trade negotiations with the United States, emphasizing that discussions are ongoing despite mounting tensions and looming tariffs. Speaking at the Economic Times World Leaders Forum in 2025, Jaishankar dispelled any notion of a complete breakdown, using the metaphor that it’s not like there’s been a “kutti” — a Hindi term for a childish falling out. However, he made it clear that India has defined firm “red lines” that it will not cross in these talks, particularly regarding the protection of farmers and small producers.

The core of India’s stance revolves around safeguarding domestic interests that are non-negotiable. Jaishankar reiterated that India’s priority is the welfare of its agricultural community and small-scale manufacturers, sectors that could be disproportionately impacted by some of the demands in the US trade negotiations. This determination stems from India’s larger commitment to protect its vulnerable stakeholders and assert strategic autonomy in economic policymaking. The trade talks have seen friction primarily because India resists opening its vast agricultural and dairy markets, which remain integral to its economic and social fabric.

The backdrop to these talks includes the US imposing tariffs up to 50% on certain Indian goods as a punitive measure linked to India’s purchase of Russian oil. A 25% tariff is already in effect, with an additional 25% set to begin soon. Jaishankar criticized these tariffs as unjustified, framing them as secondary sanctions disguised as trade measures. He highlighted the inconsistency, noting that while the US imposes penalties on India for trading with Russia, China—India’s geopolitical competitor and a major buyer of Russian oil—is not similarly targeted. His position underscores India’s insistence on making decisions based on its national interest without external coercion.

Jaishankar also reflected on the broader diplomatic style of the current US administration, noting its unprecedented openness and public handling of foreign policy, a departure from traditional diplomatic secrecy. While this has introduced challenges, it is a reality India is navigating carefully without compromising its negotiating principles. The External Affairs Minister’s remarks also stress that trade in today’s global environment is entwined deeply with political and personal considerations—there is no longer “just trade.” This insight reveals the complex dynamics shaping international commerce, where geopolitical relations heavily influence negotiations and outcomes.