Trump slaps 50% tariff, US-India ties worsen.
US-India ties worsen as Trump imposes steep 50% tariff.
India remains among a small group of major global economies that have yet to secure a trade deal with the United States. As a result, it now faces the highest tariff rate imposed by the US on any major economy. The newly announced 50 percent tariff by President Trump significantly escalates trade tensions between the two nations. This move not only threatens to disrupt bilateral economic relations but also puts immense pressure on Indian exporters and industries dependent on US markets.
Even as the United States slapped India with a staggering 50 percent tariff—the highest imposed on any country so far—the already fragile relationship between the two nations appears to be entering its most difficult phase in recent years. What was once hailed as a growing strategic partnership is now being tested by a move many experts call both unexpected and deeply symbolic.
The fresh wave of tariffs was announced on Wednesday, when Washington imposed an additional 25 percent duty on Indian goods in response to New Delhi’s continued import of discounted Russian oil. Combined with earlier trade measures, this takes the total tariff burden on Indian exports to 50 percent—a rate matched only by Brazil. The message from President Donald Trump seems unmistakably clear: economic nationalism through onshoring trumps global alliances, even with so-called “friends.”
“It’s no longer about friend-shoring. It’s about bringing jobs and manufacturing home, regardless of the fallout,” said a former US trade official. The phrase “friend-shoring” had gained popularity in recent years as Washington sought to encourage supply chains among allied nations. But this latest move signals a clear departure.
The decision has blindsided many in New Delhi, especially considering that India had been among the first nations to initiate detailed trade negotiations with the United States. More surprisingly, Trump and Indian Prime Minister Narendra Modi have long spoken of their mutual admiration. In public appearances, they’ve referred to each other as friends, praised one another’s leadership, and emphasized the shared democratic values binding the two nations.
In recent weeks, a series of closed-door meetings between US and Indian officials reportedly revealed growing disagreements—not just over energy imports, but also over digital data policies, defense procurement, and intellectual property rights.
In 2024, the total bilateral trade between India and the United States stood at approximately \$212 billion, with India enjoying a trade surplus of around \$46 billion. Modi has been vocal about wanting to double that figure to \$500 billion over the next five years. But those ambitions now appear to be in jeopardy.
In hopes of averting steep tariffs, India had made several concessions during trade talks, according to Reuters. These included an offer to lift levies on US industrial goods, expand energy and defense purchases, and even reduce import taxes on cars—a move that would have faced stiff resistance from India’s powerful domestic auto industry.
“This was not just about economics. This was about trust,” said a senior Indian official who was part of the negotiation team. But the US decision shows a lack of respect for the partnership we were trying to build.”
The new tariffs are set to take effect in three weeks. Indian exporters are already scrambling to assess the impact. From textiles and pharmaceuticals to electronics and auto components, multiple industries are bracing for potential disruption.
For ordinary citizens and businesses in both countries, the fallout could mean higher prices, lost jobs, and growing uncertainty.
What lies ahead for US-India relations is unclear. And while political leaders may still exchange warm words in public, the foundations of the relationship are now being tested like never before.