Jaishankar flags terrorism, trade and visa issues in India-US ties
External Affairs Minister S. Jaishankar has identified three issues that could affect India-US relations: Washington's lack of "empathy" for India's terrorism concerns, uncertainty over US trade policy, and growing restrictions on skilled-worker mobility. Speaking at an Asia Society interaction in New York on Monday, September 28, he said India and the US had reached "more or less an understanding" on a trade agreement, but the shift to a Section 301 basis after reciprocal tariffs were struck down had created complications. He expected an upward trajectory.
Source
External Affairs — S. Jaishankar · read the original report ↗
Desk check · compared with the source
What the desk checked (5)
- Jaishankar cited terrorism, US trade policy uncertainty and curbs on skilled-worker mobility as issues affecting India-US ties. — Directly attributed to Jaishankar at an Asia Society interaction in New York on Monday, September 28, with quotes in source.
- India and the US had reached 'more or less an understanding' on a trade agreement, complicated by a shift to Section 301. — Quoted statement attributed to Jaishankar; source adds that reciprocal tariffs were struck down by a DC court.
- India was subjected to the highest 'reciprocal' tariffs of 50% by the Trump administration. — Figure appears in source but is stated without attribution to a specific document or official.
- The Trump administration imposed a $100,000 payment requirement for certain new H-1B workers. — Figure appears in source as background; no source or order cited.
- Pakistan has emerged as a close interlocutor for Trump, including via the Board of Peace on the Gaza ceasefire. — Unattributed editorial framing by the publication, not part of Jaishankar's quoted remarks.
Analysts’ view opinion
Jaishankar's language was restrained, but the political signal is unmistakable: New Delhi is now publicly conceding that not all is well in the India-US relationship. A foreign minister saying Washington lacks "empathy" on terrorism — against the backdrop of closer US engagement with Islamabad under Trump — sits awkwardly with the government's own narrative of diplomatic success. At the same time, his insistence on an "upward trajectory" is an attempt to deny critics an opening while keeping negotiating doors open.
- Naming "a neighbour" rather than Pakistan is careful political balancing: firm enough for domestic audiences, soft enough to avoid an open rupture with Washington.
- Pakistan's emergence as a close Trump interlocutor after Operation Sindoor complicates the claim that Islamabad had been diplomatically isolated — a ready-made line of attack for the opposition.
- The stalled trade deal, 50% tariffs and the new Section 301 process let Jaishankar frame delay as protection of small farmers and small factories, an unavoidable domestic political constraint.
- New H-1B restrictions touch India's aspirational middle class and IT workforce directly, making this a domestically sensitive issue rather than a purely diplomatic one.
- His remark that public opinion in a social media era now shapes foreign policy effectively locates the problem in American domestic politics, deflecting pressure outward.
What to watch — Watch how the Section 301 process unfolds and whether the trade agreement is closed — a deal would give the government relief, while further drift would sharpen domestic criticism of its foreign policy record.
This rests on a minister's public remarks at one event; it does not establish the actual state of negotiations, any timeline for a deal, or how Washington will respond.
Deep dive
Research brief · 8 facts · 5 dates · exam-readyThe brief
Context
External Affairs Minister S. Jaishankar, speaking at an Asia Society interaction in New York on Monday, September 28, publicly listed three irritants in India-US ties: Washington's lack of "empathy" for India's terrorism concerns, uncertainty in US trade policy, and rising restrictions on skilled-worker mobility. His remarks come against the backdrop of closer US engagement with Islamabad under President Donald Trump, particularly after Operation Sindoor — India's four-day military confrontation with Pakistan in May 2025 following the Pahalgam terror attack. On trade, negotiations have been complicated by the US shift from "reciprocal" tariffs, struck down by the Supreme Court in DC, to a Section 301 basis. On visas, the Trump administration has imposed a $100,000 payment requirement for certain new H-1B workers.
Key facts
- Jaishankar named three issues affecting India-US ties: lack of US empathy on terrorism, uncertainty in US trade policy, and restrictions on skilled-worker mobility.
- He spoke at an Asia Society interaction in New York on Monday, September 28; the article went live on September 30, 2026, at 9:08 am.
- Jaishankar said India faced terrorism from "a neighbour" as part of a "deliberate, conscious policy" over many decades, without naming Pakistan.
- He said India and the US had reached "more or less an understanding" on a trade agreement, but the US tariff framework changed.
- US "reciprocal tariffs" were struck down by the Supreme Court in DC; tariffs now rest on a new basis — Section 301 — a process still "in the works".
- India was slapped with the highest 'reciprocal' tariffs by the Trump administration at 50% last year.
- The Trump administration imposed a $100,000 payment requirement for certain new H-1B workers and moved to weight higher-paid positions in selection.
- Jaishankar said "the economics of mobility and the politics of mobility are at odds with each other, at least in some quarters", but expected an "upward trajectory".
Timeline
- April-May 2025 (as sequenced in source)Pahalgam terror attack, followed by Operation Sindoor, India's four-day military confrontation with Pakistan in May 2025.
- Last year (as stated in source)Trump administration imposed 50% 'reciprocal' tariffs on India — the highest imposed on any country.
- SubsequentlySupreme Court in DC struck down reciprocal tariffs; US shifted to Section 301 as the basis for tariff imposition, with USTR initiating investigations.
- Monday, September 28Jaishankar flags terrorism, trade and visa issues at Asia Society interaction in New York.
- September 30, 2026, 9:08 amArticle published.
Who has a stake
- Ministry of External Affairs / S. Jaishankar — Must manage a relationship it calls upward-trending while publicly registering concerns on terrorism, tariffs and mobility.
- United States government / Trump administration — Setting tariff policy via Section 301 and tightening H-1B rules while engaging Islamabad closely.
- Pakistan's leadership — Has emerged as a close interlocutor for Trump, including via the Board of Peace for the Gaza ceasefire and Tehran-Washington mediation efforts.
- Indian IT professionals and technology firms — Heavy users of H-1B visas; face the $100,000 payment requirement and wage-weighted selection.
- India's small agricultural producers and small factories — Structural differences cited by Jaishankar as making trade negotiations more complicated than expected.
- US Trade Representative (USTR) — Has initiated Section 301 investigations covering a range of trade practices, affecting the timing of any deal.
- US technology companies — Argue access to skilled foreign workers remains important against anti-immigration campaigns.
Why it matters
A senior Indian minister putting terrorism, tariffs and visas on the record signals that structural frictions, not just transactional disputes, now shape India-US ties. With a trade deal described as "very, very far advanced" but stalled by a shifting US tariff basis, and H-1B costs rising, the stakes touch Indian farmers, small factories and technology workers alike. Jaishankar's point that public opinion and domestic politics now drive foreign policy suggests these irritants will not be resolved by diplomacy alone.
UPSC angle
Prelims pointers
- Section 301 (US Trade Act) became the new basis for US tariff imposition after reciprocal tariffs were struck down by the Supreme Court in DC.
- India faced the highest 'reciprocal' tariff from the Trump administration at 50%.
- Operation Sindoor: India's four-day military confrontation with Pakistan in May 2025 after the Pahalgam terror attack.
- H-1B: US skilled-worker visa heavily used by Indian tech professionals; $100,000 payment requirement imposed for certain new workers.
- Board of Peace: body for implementing the Gaza ceasefire, in which Pakistan participates.
- USTR (US Trade Representative) has initiated Section 301 investigations covering a range of trade practices.
Mains framing
Jaishankar's New York remarks frame India-US friction as arising from three structural sources rather than episodic disputes. First, a security asymmetry: India treats cross-border terrorism from "a neighbour" pursued as a "deliberate, conscious policy" as a primary concern, while Washington has deepened engagement with Islamabad after Operation Sindoor — Pakistan featuring in the Board of Peace for the Gaza ceasefire and in Tehran-Washington mediation — leading Jaishankar to argue that when a partner does not appreciate one's primary concern, the relationship is affected. Second, trade unpredictability: an understanding described as "more or less" reached and "very, very far advanced" is stalled because reciprocal tariffs (India's were the highest, at 50%) were struck down and replaced by an unfolding Section 301 process, raising the question of when to close a deal on shifting ground; negotiations are further complicated by structural differences, notably India's large base of small agricultural producers and small factories. Third, mobility: the H-1B route for Indian technology professionals now faces a $100,000 payment requirement and wage-weighted selection, with the "economics of mobility and the politics of mobility at odds". The way forward, in Jaishankar's own framing, is realism about these issues while working for an "upward trajectory", recognising that in a social media era public opinion in democratic societies shapes diplomacy.
Key terms
- Section 301
- US trade law provision now used as the basis for tariff imposition after reciprocal tariffs were struck down; USTR investigations are ongoing.
- Reciprocal tariffs
- Trump-era tariff framework under which India faced 50%, the highest; struck down by the Supreme Court in DC.
- H-1B visa
- US skilled-worker visa heavily used by Indian technology professionals, now carrying a $100,000 payment requirement for certain new workers.
- Operation Sindoor
- India's four-day military confrontation with Pakistan in May 2025 following the Pahalgam terror attack.
- Board of Peace
- Mechanism for implementing the Gaza ceasefire, in which Pakistan's leadership participates.
- Asia Society
- New York-based forum where Jaishankar's September 28 interaction took place.
Practice questions
- "Empathy on terrorism is now as much a test of partnership as trade and technology." Examine this proposition in the context of recent India-US engagement.
- How does the shift from reciprocal tariffs to a Section 301 basis complicate the conclusion of an India-US trade agreement? Discuss with reference to India's agricultural and small-manufacturing structure.
- Discuss how domestic politics and public opinion in democratic societies are reshaping the conduct of foreign policy, using the H-1B visa debate as an illustration.
Grounded only in the source report — figures and dates are the source's, not inferred.