Red lines cannot be crossed in trade talks with US, Centre tells parliamentary panel
The assertion came as India faces the impact of sweeping new US tariffs imposed by President Donald Trump, who has announced there will be no further trade talks until the tariff dispute is resolved. According to sources present at the briefing, the government emphasised its uncompromising stance on core sectors, especially agriculture and dairy, while outlining a strategy to cushion the economic blow through export diversification.
'Red lines were clearly flagged,' a source said, 'particularly against the US demand to open India's agri and dairy sectors. There will be no compromise on these.'
Describing the current phase of trade relations as 'difficult,' officials said India is intensifying efforts to leverage existing free trade agreements and accelerate new ones with key partners like the UK and the European Free Trade Association (EFTA), alongside ongoing negotiations with the EU.
The US has imposed a 25% tariff on most Indian exports -- excluding electronics, semiconductors, and energy products -- effective August 7, with an additional 25 per cent penalty set to take effect from August 27, citing India's continued purchase of Russian oil. Sectors such as auto parts, textiles, leather, and gems and jewellery are expected to be most affected, according to those who were present in the briefing.
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