India & US Backchannel Talks Persist Amid Tariff Dispute

India has roundly criticized US President Donald Trump's move to impose a 50 percent tariff on Indian products from August 28, labeling the action "unfair, unjustified and unreasonable," even as the two countries continue back-room high-level engagement on energy and strategic interests.

The additional 25 percent hike on top of an existing 25 percent tariff has intensified diplomatic efforts in New Delhi and Washington to keep the broader India-US partnership stable. “India will safeguard its national interests and respond appropriately,” a senior Indian official said, underlining New Delhi’s resolve to counter punitive trade actions.

Key highlights:

• India condemned the 50 percent US tariff as ‘unfair’ and vowed to protect its national interests amid rising trade tensions
• Despite political strain, India and the US continue high-level engagement on energy and strategic projects like the IMEC
• India increased US crude imports by 114 percent in Q1 FY26, defending its energy ties with both the US and Russia

Despite the political fire, functional cooperation is stable. Ricky Gill US National Security Council Director for South Asia traveled to India this week to discuss the stalled India-Middle East-Europe Economic Corridor (IMEC), confirming strategic convergence continues. "Our collaboration with the US exceeds short-term differences," declared one of the Indian diplomats engaged in the negotiations.

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Energy collaboration stands out. India increased US crude imports by 114 percent in Q1 of FY26, to USD 3.7 billion. Even LNG imports are increasing. "Our diversification policy has the US and Russia as part of it, on the basis of energy security and competitive prices," the Ministry of External Affairs stressed.

India has justified its buying of Russian oil by referring to ongoing Western commerce with Moscow. "The US itself buys uranium, palladium, and fertilizers from Russia," the MEA said.

In the uncertainty, experts emphasize the need for dialogue. "Bureaucratic channels are keeping this alliance strong," said Basant Sanghera of the Asia Group.