Jai Shankar and Rubio stressed on early conclusion of bilateral trade agreement

External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio held a phone conversation on Monday (7 April 2025). The conversation took place at a time when US President Donald Trump announced “reciprocal tariffs” on several countries, including a 26% duty on all goods imported from India.

This Decision of the Trump Administration Has Caused a Stir in the Markets Around the World

This decision of the Trump administration has caused a stir in the markets around the world. Jaishankar and Rubio agreed to expedite the negotiations for the Bilateral Trade Agreement (BTA) between India and the US.

The previously fixed “base-line” levy of 10% came into effect on April 5, and the remaining 16% will be applicable from April 9. This led to a decline in the Indian stock market on Monday, with both the Sensex and the Nifty falling more than 3%.

Jaishankar wrote on the social media platform 'X', "It was nice to speak with US Secretary of State Rubio. We agreed on the importance of concluding a bilateral trade agreement soon. Look forward to staying in touch."

India Has Not Taken Any Retaliatory Action Against US Tariffs

Trade officials from India and the US had negotiated the agreement in Delhi on March 26-29 and the key points of the talks were finalised.

India has not yet retaliated against the US tariffs. Government officials say India is focusing on completing the first part of the deal this year to reduce tariffs on Indian products in the US and open the way for India to enter the US market.

The US Finance Minister has also warned that the countries on which tariffs have been imposed should not retaliate. He said, "My advice is that you should not retaliate. If you retaliate, the situation will worsen, if you do not retaliate, it will stop here."

On April 7, President Trump threatened to impose an additional 50% tariff on China if China did not withdraw its decision to increase tariffs by 34%. This announcement further spread panic in the global market.

Jaishankar also said that he and Rubio also discussed the Indo-Pacific, the Indian subcontinent, Europe, the Middle East/West Asia, and the Caribbean regions, but did not give further details.

Neither US Secretary of State Rubio nor the US State Department has commented on the phone call so far. Earlier on March 28, India's Foreign Secretary Vikram Misri and US Deputy Secretary of State Christopher Landau also held talks on bilateral issues. Apart from this, US National Security Advisor Michael Waltz is also scheduled to meet NSA Ajit Doval in Delhi this month.

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