External Affairs Minister S. Jaishankar on Sunday said that India and the United States are actively working to resolve their ongoing tariff disputes through dialogue, expressing optimism that these challenges will not impact the broader trade relationship between the two countries.

Speaking at the Kautilya Economic Conclave (KEC 2025) in New Delhi, Jaishankar noted that despite the current tariff differences, “a large part of India’s trade with the US remains business as usual.” He attributed the tensions to the inability of both sides to reach common ground on certain issues. “We have issues with the US, and a big part of it is because we have not arrived at a landing ground. The inability to reach there has led to tariffs being levied,” he said.

The minister revealed that negotiations are ongoing regarding the 50 percent tariffs imposed on Indian exports, emphasizing that India’s “red lines have to be respected” while finding a solution. “There has to be an understanding with the US because it is the number one market, and because a lot of the world has reached that understanding,” Jaishankar added.

He underlined that these issues are not expected to disrupt overall trade flows between the two countries. “Some issues will need to be negotiated, but I would hesitate to read very much more into it than the issues themselves,” he remarked.

Jaishankar also cautioned that the growing global reliance on tariffs as a trade tool poses challenges for policymakers. “When the central consideration of trade becomes tariffs, where do comparative and competitive advantages go?” he asked.

Highlighting India’s expanding trade partnerships across Asia, the minister said India’s focus should now be on free trade agreements (FTAs) with economies that are complementary, not directly competitive.