US-India Relations Strained Over Tariffs and Geopolitics Amid Mixed Signals from Trump
Tensions between the US and India are high following US President Donald Trump's imposition of 50% tariffs on Indian goods, partly due to India's continued purchase of Russian oil. Trump made conflicting remarks, stating he would "always be friends" with PM Modi while also lamenting that the US has "lost India and Russia to deepest, darkest China." Prime Minister Modi reciprocated the positive sentiments, but the underlying friction over trade and India's strategic autonomy continues to challenge the bilateral relationship.
Unpacked:
Nearly US$48.2 billion worth of India's merchandise exports are impacted, especially agricultural products, textiles, pharmaceuticals, and auto parts. The tariffs target sectors where India has a trade surplus with the US, creating significant challenges for exporters and related industries.
India maintains its Russian oil imports for energy security and cost reasons. Russian oil is often offered at discounted rates, and India seeks to diversify energy sources. The government argues that Western nations also buy Russian goods, so targeting India is unfair.
The tariffs have strained bilateral ties, jeopardizing up to 70% of Indian exports to the US and stalling US investments in India. They have disrupted supply chain relocation strategies and prompted India to seek trade diversification and reform.
Yes, tensions escalated after India's rejection of Trump's offer to mediate during the 2025 India-Pakistan conflict. This perceived diplomatic snub contributed to Trump's decision to impose unusually high tariffs, compounding trade and strategic disagreements.