Jaishankar Meets Rubio, Goyal Calls On Greer In NYC Amid Tariffs, H-1B Fee Hike Row. What It Means For India-US Ties?

(MENAFN- Live Mint) External Affairs Minister S Jaishankar met US Secretary of State Marco Rubio on Monday and discussed a range of bilateral and international issues of "current concern".

The meeting at Lotte New York Palace on the sidelines of the 80th session of the UN General Assembly is the first face-to-face interaction between them following President Donald Trump' s imposition of an additional 25 per cent tariff on India for Delhi's purchases of Russian oil, taking the total levies imposed on India to 50 per cent.

Also Read | India-US ties is of critical importance...: Rubio says on meeting Jaishankar

“Secretary Rubio, reiterating that India is a relationship of critical importance to the United States, expressed his appreciation for the Indian government's continued engagement on a number of issues including trade, defense, energy, pharmaceuticals, critical minerals, and other items related to the bilateral relationship,” Rubio was quoted as saying in a statement by US Department of State .

The two leaders had last met in July in Washington DC for the Quad Foreign Ministers' Meeting. Their meeting takes place on the same day India and the US will hold discussions to achieve an early conclusion of a trade agreement.

H-1B visa fee hike of $100,000

Jaishankar's meeting with Rubio also came days after Donald Trump administration's decision to raise H-1B visa fees.

Trump's surprise H-1B visa fee hike of $100,000 (~ ₹90 lakh) triggered a wave of panic – leaving tech giants including Meta, Microsoft at the edge. On September 20, White House clarified that the $100,000 fee is not a annual charge and won't apply to existing holders of valid visas re-entering the country

"This is NOT an annual fee. It's a one-time fee that applies only to the petition." And, goes on to add that current H-1B visa holders who are currently outside of the country right now will not be charged $100,000 to re-enter the United States," White House spokesperson Karoline Leavitt said.

Jaishankar, who arrived in New York on Sunday for the high-level UNGA week , will hold a series of bilateral and multilateral meetings on the sidelines of the session and will deliver the national statement at the General Debate on September 27 from the iconic green UNGA podium.

Goyal meets Greer in NYC

The EAM meeting with US Secretary of state coincided with a delegation led by Union Commerce and Industries Minister Piyush Goyal meeting with the US side. Goyal met United States trade representative Jamieson Greer met in New York on Monday in an effort to accelerate trade talks between the two countries.

This was the third meeting between Goyal and Greer this year, following earlier talks in March and May. The two leaders were keen to build on the momentum established by the recent positive interactions between Prime Minister Narendra Modi and US President Donald Trump, Hindustan Times reported from Washington DC.

Also Read | Piyush Goyal to visit US on Sept 22 for 'early conclusion' of trade deal

"The delegation plans to take forward the discussions with a view to achieving early conclusion of a mutually beneficial Trade Agreement," the Ministry of Commerce and Industry had said in a statement.

The statement added that during the last visit of officials from the office of the US Trade Representative to India on September 16, positive discussions were held on various aspects of the trade deal, and it was decided to intensify efforts in this regard.

Outreach between the two nations

The visits by two top ministers in the Narendra Modi cabinet marks a significant outreach between the two nations that have traditionally been partners but have recently suffered a downturn in ties amid an escalation in criticism by Trump administration officials over India's purchases of Russian oil.

The talks, which were halted for some time, resumed after Donald Trump announced that his team was continuing trade negotiations with India.

Earlier this month, Donald Trump said he was optimistic about concluding a trade agreement with India. In response, Prime Minister Narendra Modi said the trade negotiations would pave the way for "unlocking the limitless potential of the India-US partnership"

Modi-Trump Speak

The visit by the ministers comes after the daylong discussions in New Delhi between US Chief Negotiator Brendan Lynch and his Indian counterpart Rajesh Agrawal on the proposed bilateral trade agreement on September 16. The same day, President Donald Trump spoke with Prime Minister Narendra Modi on phone to wish him on his 75th birthday the next day. PM Modi responded by saying he was“fully committed” to taking the Indo-US partnership to“new heights”.

In February, leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement (BTA).

It was planned to conclude the first tranche of the pact by the fall (October-November) of 2025. So far, five rounds of negotiations have been held. The pact is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.

'Resolution to the tariff stand-off soon'

India's chief economic adviser (CEA) V Anantha Nageswaran struck an optimistic note on 18 September saying he expected a resolution to the tariff stand-off with the US within the next two months, even as he projected steady momentum in India's domestic economy.

Also Read | Piyush Goyal heads to the US on Monday. What to expect?

Speaking at an industry gathering in Kolkata, Nageswaran said he believed Washington would soon roll back the additional 25% tariff imposed on New Delhi for buying Russian oil .

Goyal visited Washington earlier in May for the trade talks. He held deliberations with US Commerce Secretary Howard Lutnick in Washington.

India-US bilateral trade

India is a relationship of critical importance to the United States.

The US remains India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion ($86.5 billion exports).

The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade.

(With agency inputs)

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