India has taken a tough stance in its ongoing trade tussle with the United States, effectively stepping away from negotiations after Washington’s 50% #TRUMP -era tariffs came back into play last week.
Former Finance Secretary Subhash Garg summed it up bluntly: “No one can trade at those tariff levels.” Still, he suggested India shouldn’t completely close the door, hoping that “sanity” will eventually return to the table.
On the American side, Treasury Secretary Scott Bessent expressed frustration, saying he once expected a deal with India by early summer. Instead, he claims New Delhi “tapped us along.” He also pushed back against the narrative that the tariffs are only about Russian oil, stressing that they reflect deeper tensions over trade delays.
Even so, Bessent tried to strike an optimistic note: “India is the world’s largest democracy. The US is the world’s largest economy. We’ll come together.”
For now, though, New Delhi has rejected the tariffs as “unjustified.” Officials say they remain open to dialogue, but their priorities are clear — shielding farmers, cattle rearers, fisherfolk, and small businesses from unfair competition. Prime Minister Modi underscored that point directly: “We will not compromise. India is ready to bear any price to protect its farmers.”
Garg, however, urged a bit more flexibility in agriculture, suggesting India should rethink its rigid stance on imports like GM oils or dairy, and instead let consumers decide.
Adding to the uncertainty, a US court recently ruled that most of the Trump-era tariffs were illegal, but allowed them to remain in place until October 14 while the case moves to the Supreme Court. Trump, in familiar fashion, insisted the tariffs stay, dismissing the ruling as “partisan.”
Where things go next is uncertain. For now, both sides are holding firm. But with informal backchannel talks still alive - particularly on defense and foreign policy - the possibility of a compromise isn’t completely off the table.
