Jaishankar, Rubio discuss tariffs, bilateral trade deal

External affairs minister S Jaishankar and US secretary of state Marco Rubio have reaffirmed their commitment to strengthen trade ties and conclude a bilateral trade agreement (BTA) at the earliest.

The two leaders’ telephonic conversation comes against the backdrop of reciprocal tariffs against India and several other countries by US President Donald Trump.

During the phone call, Jaishankar and Rubio discussed key issues affecting the Indo-US trade relationship, including a 26% reciprocal tariff imposed by the Trump administration on Indian imports.

The two also talked about creating a “fair and balanced trade relationship,” with India now considering a proposal to seek temporary suspension of the tariff until the BTA is finalized.

Taking to X, Jaishankar noted that he and Rubio “exchanged perspectives on the Indo-Pacific, the Indian Subcontinent, Europe, Middle East/West Asia and the Caribbean.”

Their discussion also comes after India and the US agreed in February to aim for a final agreement on trade by this year’s autumn.

India is one of the few countries that is consistently negotiating a bilateral trade deal with the US.

According to Indian officials quoted in media reports, New Delhi does not plan to retaliate against the tariff hike despite mounting pressure from various sectors.

The United States Trade Representative (USTR) recently called India’s ban on US ethanol imports as an “unfair trade practice”.

The telephonic call between Jaishankar and Rubio also comes at a time when trade hostilities are escalating between the US and China.

Trump recently imposed a 34% tariff on Chinese imports. In response, China also slapped the US with the same rate of tariff. Following this, Trump warned of an additional 50% duty unless China withdrew its measures.

In reply, China’s commerce ministry issued a statement saying, “The US side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature. If the US insists on having its way, China will fight to the end.”

Meanwhile, Union commerce minister Piyush Goyal has sharply criticized China for what he called “unfair trade practices.”

Goyal accused China of using opaque subsidies, distorted pricing, and exploitative labor practices to boost its export-driven economy.

He said such methods violated global norms and contributed to imbalances in international trade.

Goyal also warned that unchecked dominance by China could have adverse effects on countries like India, adding that corrective measures were necessary to prevent deeper global economic challenges.

Amid these growing tensions, the US administration has also expanded its tariff policy. A 10% baseline tax has been introduced on imports from all countries, with even higher tariffs targeting countries with trade surpluses against the US.