India-US trade talks must respect New Delhi’s red lines: S Jaishankar

External Affairs Minister S. Jaishankar on Sunday said any prospective trade agreement between India and the United States must respect India’s “red lines,” even as negotiations continue amid tensions over Washington’s tariff policies.

Speaking at an interactive session on Shaping Foreign Policy in Turbulent Times at the Kautilya Economic Enclave, Jaishankar admitted that differences persist between the two nations, primarily due to the failure to finalise a trade deal. He stressed that while compromises are part of diplomacy, “there are things you can negotiate and there are things you can’t.”

The remarks come against the backdrop of strained ties following US President Donald Trump’s decision in August to double tariffs on Indian goods to 50 per cent, including an additional duty on India’s purchase of Russian crude oil. India had sharply criticised the move as “unfair, unjustified and unreasonable.”

Although a recent phone conversation between Prime Minister Narendra Modi and Trump has revived efforts toward a deal, Jaishankar noted that the two sides have yet to find a “landing ground.” He emphasised the need for a mutually acceptable arrangement, given that the US remains the world’s largest market.

“At the end of the day, there has got to be a trade understanding with the US,” Jaishankar said. “But it has to be one where our bottom lines are respected.” He reiterated that India is clear on its approach and committed to pursuing an agreement since talks resumed earlier this year.

While acknowledging the difficulties, the minister maintained that the strain has not derailed the broader relationship. “There are problems, there are issues, nobody is in denial of it,” he said. “But a large part of the relationship is actually continuing as business as usual in some areas even stronger than before.”

India and the US have held several rounds of negotiations in recent months, though sharp divergences remain over sensitive sectors such as agriculture and dairy.

Beyond trade, Jaishankar spoke at length about global challenges, describing the current period as one of “extraordinary and intense change.” He pointed to weakening international regimes, rising competition over critical minerals, and shifting supply chains as indicators of new geopolitical realities.

He warned of the risks of overdependence on a single country for global manufacturing, in a veiled reference to China, and highlighted the fragility of concentrated supply chains. He also observed that sanctions, seizure of sovereign assets, and new forms of warfare as seen in Ukraine, the Middle East, and the Caucasus are reshaping global politics and security.

“For us, just defending what we have is simply not good enough,” Jaishankar said, urging India to go beyond safeguarding its position and continue on its path of growth and influence.