Despite escalating tariff tensions between the United States and India, President Donald Trump has publicly reaffirmed his friendship with Prime Minister Narendra Modi, emphasizing the "very special relationship" between the two nations. However, this declaration comes amidst a backdrop of strained relations, marked by a recent imposition of a 50% tariff on Indian goods by the U.S. and criticism of India's continued purchase of Russian oil.
Trump's recent comments present a mixed message. On one hand, he insists on his personal rapport with Modi and the enduring strength of the U.S.-India bond. He stated that he will "always be friends" with Modi, describing him as "a great Prime Minister" and assuring that there is "nothing to worry about" in the ties between the two countries. On the other hand, he has voiced his disapproval of Modi's recent actions, particularly India's continued import of Russian oil despite Western sanctions. Trump said he was "very disappointed" in India's oil purchases from Russia and that his administration had imposed a "very big tariff" on New Delhi in response.
The current state of affairs marks a significant shift from the perceived warmth between the two leaders in previous years. The "Howdy Modi" event in Texas and Modi's visit to Washington earlier in the year, seem a distant memory as trade disputes and geopolitical differences take center stage. Former U.S. National Security Advisor John Bolton has gone so far as to say that the "Trump-Modi friendship is history".
The imposition of tariffs has become a major sticking point. The Trump administration initially imposed a 25% tariff on Indian goods, later doubling it to 50%. This move has been criticized by some U.S. lawmakers who believe it will hurt American consumers and businesses, and ultimately "sabotage" the U.S.-India relationship. The tariffs are among the highest levied on a U.S. trading partner. In response, the Indian government reduced GST on hundreds of goods to increase consumption and avoid the potential impact of tariffs imposed by Trump administration.
India's continued purchase of Russian oil has been a key point of contention. The U.S. has been pressuring countries to cut ties with Russia economically, but India has maintained its stance of strategic autonomy, arguing that its energy policy is based on its own national interests. This position has drawn criticism from the Trump administration, with some officials suggesting that India is funding Russia's war in Ukraine.
Despite the tensions, both sides have expressed a desire to maintain a strong relationship. The Indian Ministry of External Affairs (MEA) has emphasized the importance of the "comprehensive global strategic partnership" between India and the U.S., highlighting shared interests, democratic values, and people-to-people ties. The MEA also confirmed that India continues to engage with the U.S. on trade issues.
However, the current situation has raised concerns about the future of strategic cooperation between the two countries. Experts warn that the fallout could unsettle mutual trust, complicate defense ties, and undermine joint regional initiatives, including the Quad. Some analysts suggest that the tariffs and tensions could push India closer to China and Russia. Trump himself has shared a picture of Prime Minister Narendra Modi with Vladimir Putin and Xi Jinping at the Tianjin meet.
The coming months will be crucial in determining the future trajectory of U.S.-India relations. Whether the two sides can navigate their differences and reaffirm their commitment to a strong partnership remains to be seen. The personal relationship between Trump and Modi, despite recent strains, could still play a role in de-escalating tensions and finding a path forward.