New Delhi: The “historic” India-US trade agreement is in the final stages of detailing that will be completed “very soon”, External Affairs Minister S Jaishankar said Thursday after holding wide-ranging talks with US Secretary of State Marco Rubio.
The talks between Jaishankar and Rubio in Washington DC came three days after US President Donald Trump, following a phone conversation with Prime Minister Narendra Modi, announced a reduction of US tariffs on Indian goods to 18 per cent from 50 per cent under the trade deal.
The external affairs minister said the trade deal will open up a “new phase” in the relations.
Except for a confirmation on bringing down the US tariffs, including the removal of a 25 per cent levy imposed on India by Washington over Russian energy purchases, no concrete details of the trade deal have come out so far.
Jaishankar, in a social media post, described his visit to the US as “productive” and “positive”.
“The historic India-US trade deal is in the final stages of detailing that will be completed very soon. It opens up a new phase in our bilateral ties, with vast possibilities for the relationship,” he said.
“Our critical mineral cooperation is also advancing rapidly. Expect engagement on strategic issues, defence and energy in the coming days.
Overall, a strong momentum is evident,” he said.
Jaishankar was in Washington DC to attend a US-led ministerial meeting on critical minerals.
India-US ties have been reeling under severe stress after Trump doubled tariffs on Indian goods to a whopping 50 per cent, including a 25 per cent additional duty for India’s purchase of Russian crude oil.
Apart from the tariff issue, the relations witnessed a downturn on a number of other issues that included Trump’s claim of ending the India-Pakistan conflict in May last year and Washington’s new immigration policy.
Following his phone talks with Modi, Trump claimed that India had agreed to stop buying Russian oil and to buy more from the US and Venezuela.
To a question on the US president’s remarks, External Affairs Ministry spokesperson Randhir Jaiswal said at a media briefing that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government.
“Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s actions are taken and will be taken with this in mind,” he said.
Jaiswal also noted India’s long-standing energy ties with Venezuela.
“The country was among India’s major sources of crude oil until FY 2019’20, which were discontinued following sanctions. Imports from Venezuela resumed in FY 2023’24, before being halted again due to the re-imposition of sanctions,” he said.
Jaiswal said Indian public sector oil companies have had a partnership with Venezuela’s National Oil Company, PdVSA and have been maintaining a presence in Venezuela since 2008.
“Consistent with India’s approach to energy security, India remains open to exploring the commercial merits of any new crude supply options, including from Venezuela,” he said.
On US tariffs on Indian goods, Jaiswal referred to Modi’s comments following the conversation with Trump.
“The prime minister noted that Made in India products will now be exported to the US at a reduced tariff of 18 per cent,” the MEA spokesperson said.
“This trade agreement will give a major boost to India’s export, labour-intensive industries, job creation, growth and bring prosperity to our people. The US side has also clarified that the final figure of the tariff is 18 per cent,” he said.