India warns of ‘red lines’ in US trade talks as tariff dispute escalates
The Cradle, August 23, 2025 —
The tariff dispute has already stalled US arms sales, with India canceling Defense Minister Rajnath Singh’s Washington trip to announce new purchases.
Indian Foreign Minister Subrahmanyam Jaishankar declared on August 23 that New Delhi has established non-negotiable boundaries in ongoing trade negotiations with the US, despite facing punitive tariffs of up to 50 percent.
“We have certain red lines in the negotiations that must be maintained and defended,” Jaishankar stated, emphasizing protection of the country’s farmers and small producers as Washington escalates economic pressure over India’s energy relationship with Moscow.
The minister’s stance follows his announcement of a $100bn trade expansion with Russia during a three-day visit to Moscow this week.
At the India–Russia Business Forum, Jaishankar said rising global uncertainty puts the emphasis back on “dependable and steady partners.”
Indian goods currently face additional US tariffs of 25 percent, with another 25 percent scheduled to take effect on 27 August.
Trump imposed the initial tariffs through an executive order signed on 6 August, telling CNBC that India’s oil purchases help fund the Kremlin’s “war machine.”
The escalating trade war has already disrupted defense cooperation, with India halting plans to purchase US weapons and military aircraft and canceling Defense Minister Rajnath Singh’s planned Washington trip, where he was set to announce new arms procurements.
In response to US pressure, Indian state refiners Indian Oil Corp. and Bharat Petroleum Corp. have begun sourcing non-Russian crude from suppliers in the US, Brazil, and Gulf states for October delivery. However, private refiners are expected to continue honoring long-term Russian contracts.
New Delhi’s purchases of discounted Russian crude skyrocketed after 2022, when European buyers reduced imports following Moscow’s invasion of Ukraine. India has defended its right to buy oil from the cheapest source, calling US tariffs “unreasonable.”
Trump has also threatened to impose tariffs on all Russian oil buyers and warned Moscow with 100 percent duties if it refuses to agree to a quick deal over Ukraine.