Amid Tariff Row, India-U.S. Hold Defense Cooperation Dialogue

India and the United States pushed forward plans to expand defense cooperation in a high-level 2+2 Intersessional Dialogue, even as relations were strained by steep new U.S. tariffs on Indian exports.

The virtual talks were co-chaired by Acting Assistant Secretary of Defense for Indo-Pacific Security Affairs Jedidiah P. Royal and State Department Senior Bureau Official Bethany P. Morrison, alongside Indian officials Nagaraj Naidu Kakanur and Vishwesh Negi.

Both sides discussed trade, energy security, civil-nuclear cooperation, critical minerals, counternarcotics, and counterterrorism. They agreed to pursue a new ten-year framework for the U.S.-India Major Defense Partnership, covering defense industrial collaboration, technology cooperation, operational coordination, and information-sharing. The meeting reaffirmed commitments under the U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) and through the Quad.

The defense agenda coincided with Washington’s tariff hike that took effect Aug. 27. The Trump administration imposed an extra 25% duty on Indian exports—citing New Delhi’s purchase of Russian oil—bringing total levies on goods such as textiles, seafood, gems and jewellery, footwear, and chemicals to 50%. The U.S. market accounted for nearly 15% of Indian textile exports in 2024, worth $118 billion, making the sector one of the worst hit.

India’s trade ministry did not comment immediately, but officials say they hope the U.S. will review the decision while preparing measures to soften the impact. The rupee fell for a fifth consecutive session, closing at a three-week low on Tuesday.

The new tariffs are expected to hurt small exporters and jobs. Despite five rounds of negotiations, no trade deal has been reached to lower U.S. tariffs to around 15%, a level already granted to Japan, South Korea, and the European Union.

White House trade adviser Peter Navarro defended the decision, saying: “It’s real easy, that India can get 25% off tomorrow if it stops buying Russian oil and helping to feed (Russia’s) war machine.”

India rejected the charge, pointing to U.S. and European trade with Russia and accusing Washington of double standards.

A temporary exemption covers Indian goods already en route before the tariff deadline, along with items like steel, aluminum, copper, and passenger vehicles, which remain subject to separate duties under U.S. national security trade law.