US-India Trade Tensions Escalate Amid Criticism of Tariffs

2 September, 2025

US-India relations are facing strain over trade policies, with US President Donald Trump describing the relationship as "one-sided" due to India's high import duties. Prominent US political figures, including former National Security Advisor John Bolton, have criticized the administration's tariff policies, arguing they are damaging a key strategic partnership and pushing India closer to Russia and China. The dispute highlights growing friction over economic policies and geopolitical alignments between the two nations.

Unpacked:

What led to the increase in tariffs between the US and India?

The tariff increase stems from President Trump’s 'America First' policy, which prioritized correcting perceived trade imbalances. The US imposed high tariffs on Indian imports, citing India’s high import duties as unfair, escalating the trade dispute and straining the relationship.

How have India's relationships with Russia and China changed due to this dispute?

India has increased engagement with Russia and China as a response to tensions with the US. Both countries have sought closer ties with India, with China aiming to align on trade issues and Russia emphasizing a 'special' relationship, though historical differences remain.

What are the main criticisms of the US tariff policy toward India?

Critics argue the tariffs damage a vital strategic partnership, undermine decades of bipartisan progress, and may push India to strengthen ties with US rivals. They also warn the economic fallout could harm key Indian industries and be difficult to reverse.

What is the current status and possible future of US-India trade relations?

As of mid-August 2025, tariffs remain at 50% with no resolution in sight. The relationship is strained, and analysts believe trust has diminished, possibly prompting India to further diversify its alliances beyond the US.