India-US ties under strain: Jaishankar, Rubio hold trade talks in Malaysia

S Jaishankar and Marco Rubio met as India and the US continue talks on a trade pact; five rounds of negotiations are done, and officials say the agreement is now close to being finalised

External Affairs Minister S Jaishankar met US Secretary of State Marco Rubio in Kuala Lumpur on Monday as India and the United States work to repair ties strained by Washington’s steep tariffs on Indian exports. 

The meeting took place on the sidelines of the annual summit of the Association of Southeast Asian Nations (ASEAN). 

In a post on X, Jaishankar said, “Glad to meet @SecRubio this morning in Kuala Lumpur. Appreciated the discussion on our bilateral ties as well as regional and global issues.” 

  Talks come amid trade negotiations

The discussions between Jaishankar and Rubio come as New Delhi and Washington continue negotiations on a bilateral trade pact. According to officials, five rounds of talks have already been completed, and the deal is said to be “very near” to conclusion, news agency PTI reported. 

Diplomatic observers say the meeting adds political weight to the ongoing economic dialogue, especially after US President Donald Trump imposed 50 per cent tariffs on Indian goods, along with an additional 25 per cent levy over India’s purchase of Russian crude oil. New Delhi has called the move “unfair, unjustified, and unreasonable”.     

 

Jaishankar’s other bilateral meetings

On Sunday, Jaishankar also met Malaysian Prime Minister Anwar Ibrahim, Singapore’s Foreign Minister Vivian Balakrishnan and Thailand’s Foreign Minister Sihasak Phuangketkeow. 

Malaysia, the current ASEAN chair, is hosting the regional summit, which brings together key global players including India, the US, China, Japan and Australia.

 

India takes cautious approach on trade deals

Union Commerce and Industry Minister Piyush Goyal recently reaffirmed that India would not sign any trade agreement “in haste” or accept terms that could restrict its “trading choices". 

He said that trade deals are not just about “tariffs or market access” but about building “trust, long-term ties, and sustainable frameworks for global business cooperation”.  “In a very short-term context, it’s not about what is going to happen in the next six months. It’s not just about being able to sell steel to America,” Goyal said, highlighting India’s focus on long-term trade interests.

 

  Commerce Secretary Rajesh Agrawal also noted that negotiations with the US are “progressing well” and both sides are “converging on most points.” “I think we are very close,” Agrawal said, referring to the Bilateral Trade Agreement (BTA) proposed by Prime Minister Narendra Modi and President Trump in February.     

 

US-Pak ties not at India’s expense, says Rubio

On Saturday, Rubio clarified that Washington’s engagement with Pakistan will not come at the cost of its relationship with India.

Speaking to reporters aboard a flight to Doha, Rubio said the US approach reflects a “mature, pragmatic foreign policy”. 

“Just like India has ties with countries that the US doesn’t, the vice versa applies,” he said. “I don’t think anything we’re doing with Pakistan comes at the expense of our relationship or friendship with India, which is deep, historic, and important.” 

Rubio added that the US wants to rebuild its partnership with Pakistan beyond counterterrorism. “We’d like to expand it beyond that, if possible,” he said, noting that he reached out to Islamabad even before recent tensions with India.

 

Trump’s policies strain US-India relations

The Trump administration’s fresh outreach to Pakistan has raised concerns in New Delhi. Earlier this year, India and Pakistan agreed to halt large-scale military actions after several days of clashes. Trump has repeatedly claimed credit for mediating the de-escalation, saying peace between the two nations would pave the way for stronger trade ties with the US. 

While India dismissed Trump’s claims, Pakistan welcomed his involvement and even nominated him for a Nobel Peace Prize.

  Trade tensions have further deepened as the US imposed 50 per cent tariffs on Indian exports, much higher than the 19 per cent applied to Pakistan. Washington has also signed deals with Islamabad on mining and oil exploration, signalling a renewed strategic focus on Pakistan.

 

[With agency inputs]