External Affairs Minister S. Jaishankar on Sunday reaffirmed that India remains open to finalising a trade pact with the United States, but made it clear that New Delhi’s “red lines” must be honoured. His comments come at a time when bilateral ties have been tested over Washington’s tariff policies.

Speaking at a discussion on “Shaping Foreign Policy in Turbulent Times” at the Kautilya Economic Enclave, Jaishankar admitted that several unresolved issues continue to strain India-US trade relations, particularly due to the absence of a mutually acceptable framework.

“We do have some outstanding issues with the United States,” Jaishankar said. “A large part of that stems from the fact that both sides have not yet found a landing ground in our trade talks. This gap has resulted in certain tariffs being imposed on Indian exports.”

The minister added that while the US is the world’s biggest market and an important trade partner for India, any agreement must recognise India’s sovereign priorities. “We need a trade understanding with the US, but one that respects our bottom lines,” he asserted. “In any negotiation, there are areas you can be flexible on, and there are areas where you cannot compromise.”

Jaishankar also criticised what he described as an “unfair” tariff measure targeting India for sourcing crude oil from Russia. “This particular tariff singles us out, even though other nations — including some that have a far more strained relationship with Moscow — continue similar practices,” he said.

Tensions escalated recently after former US President Donald Trump doubled tariffs on Indian goods to 50 per cent, adding another 25 per cent penalty linked to India’s Russian oil imports. New Delhi has denounced the move as “unfair, unjustified, and unreasonable.”

Despite these challenges, Jaishankar emphasised that both countries are in active dialogue to find common ground. “We have been engaged in discussions since March, and we are trying to identify a balanced outcome that works for both sides,” he noted.

The minister also pointed out that the ongoing trade disagreement does not overshadow the broader India-US relationship. “There are issues — no one is denying that — but they are being addressed through dialogue. Meanwhile, many areas of cooperation remain unaffected and are, in fact, progressing even faster than before,” he said.

Jaishankar’s remarks underline India’s firm stance on maintaining policy independence while navigating one of its most critical bilateral partnerships.