NEW DELHI — Former Indian finance secretary Subhash Garg has stated that India has “effectively walked away” from trade talks with the United States in response to the Trump administration’s unilateral imposition of a 50% tariff on Indian goods. Garg’s comments came in a reaction to remarks by US Treasury Secretary Scott Bessent, who had suggested that the high tariffs were a result of protracted negotiations, not just India’s purchase of Russian oil.
In a recent interview, Bessent told Fox Business that he had hoped a trade deal with India would be one of the “earliest deals,” with a completion expected in May or June, but that New Delhi had “tapped us along.” He maintained that while the relationship is “complicated,” the two countries will “come together” in the end.
Garg, however, offered a more critical perspective, telling NDTV that “no one can trade at those tariff levels.” He argued that while India has essentially ended the talks due to the tariffs, it should not formally close the door, hoping that “sanity prevails at some point.” He also defended India’s continued purchase of Russian oil, stating that it is well within the global price-cap framework and is not a violation of international agreements.
The 50% tariff, which came into effect last week, is a combination of a 25% “reciprocal” tariff and an additional 25% penalty specifically for India’s trade with Russia. An official from the Ministry of Commerce and Industry, speaking to Bloomberg on the condition of anonymity, confirmed that while formal trade talks have been postponed, “informal communication” channels remain open for critical issues like defense and foreign policy.
India has maintained that its response to the tariffs has been “restrained and responsible” and that it believes a resolution can be reached through negotiations. However, New Delhi has also made it clear that it will not compromise on its “red lines,” which include protecting the interests of its farmers, small producers, and micro, small, and medium enterprises (MSMEs). Prime Minister Narendra Modi has repeatedly affirmed this stance, stating that India is “ready to pay any price” to protect its farming community and will “bear it all” even if the pressure increases.
In a separate but related development, a US appeals court recently ruled that most of the tariffs imposed by the Trump administration under emergency powers were illegal, though the tariffs will remain in place until mid-October to allow for a potential Supreme Court appeal. President Trump has vowed to appeal the decision, calling the ruling by a “highly Partisan Appeals Court” incorrect.