Don’t Cross India’s ‘Laxman Rekha’: Jaishankar Sends Message to US on Tariff Dispute

S. Jaishankar Speaks on Tariff Hikes: Amid tensions between India and the United States over US tariff hikes, External Affairs Minister S. Jaishankar on Sunday said that any trade agreement between the two countries must respect New Delhi's "Lakshman Rekha." He also stated that efforts are underway to find "common ground" on this issue.

At a press conference after an event, Jaishankar acknowledged that there are some issues between India and the United States, many of which are related to the failure to finalize proposed trade agreements. He was speaking at an event on "The Nature of Foreign Policy in a Time of Turmoil" at the Kautilya Economic Enclave.

The Need for Trade Understanding

Jaishankar said that it is crucial to build understanding regarding trade with the United States, which is the world's largest market. He also clarified that India's fundamental concerns and "Lakshman Rekha" must be respected.

Key Issues with the US

Jaishankar said, "We have some issues with the US today. One major reason is that we haven't been able to reach a concrete outcome in our trade talks, and this inability has led to the imposition of certain tariffs on India."

He noted that a "double tariff" has also been imposed, targeting India's fuel purchases from Russia, while many other countries are also doing the same, including those with more strained relations with Russia than ours.

Reasons for Tariffs

Relations between the two countries became strained after US President Donald Trump doubled tariffs on Indian goods to 50%. This included an additional 25% tariff on India's crude oil purchases from Russia. However, following a phone conversation between Prime Minister Narendra Modi and Trump last month, both sides have made efforts to work on a proposed trade agreement.

India's Approach

Jaishankar said, "We are very clear on this matter. We want a ground where India's Lakshman Rekha (red lines) are respected, and discussions have been going on since March on this issue. The tensions in relations are not affecting every aspect of the talks."

Attempts to Resolve Issues

The Foreign Minister said that there are problems and issues, and these need to be discussed, negotiated, and resolved. He added, "I would really refrain from drawing any conclusions beyond these issues. I think the vast majority of the relationship is the same as before, and in some cases even better than before."

Jaishankar also noted in his address that the world is currently undergoing changes, and the strategic implications of this are clear. He said that international systems and rules have sometimes weakened and sometimes even eroded.