The Central Government told a parliamentary committee on Monday (11 August 2025) that ‘Red Line’ cannot be crossed in trade talks with the US and ‘focused efforts’ are being made to reduce the adverse effects of high American fees.

According to sources, Foreign Secretary Vikram Egyptian and Commerce Secretary Sunil Barthwal informed the Standing Committee on Foreign Affairs headed by Congress MP Shashi Tharoor on the topic ‘Indo-US trade talks and fees’. The Parliamentary Committee was told that business relations are going through ‘difficult times’ and the government is taking measures to deal with it. The ‘Red Line’ related to business talks refers to India’s stagnant attitude on American demand to open agriculture and dairy sector.

US President Donald Trump’s tariff
US President Donald Trump has announced a 25 percent additional fee on most of India’s products. After this, the total fee on Indian products has increased to 50 percent. Along with this, Trump has said that there will be no trade talks with India until the fee dispute is settled. Both countries have held several rounds of talks about bilateral trade agreement.

Causes of the impact of US fee
Along with this, the government said that to reduce the impact of US fee, preparations are being made to emphasize export diversification strategy and avail business agreements with other countries. However, the government told the Parliamentary Committee that Indo-US relations should not be judged only by trading stress and they should be seen as a permanent and strategic partnership.

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