Amid escalating trade tensions between the United States and India, Israeli Prime Minister Benjamin Netanyahu has voiced his support for India, asserting that Washington views New Delhi as a "solid partner". This statement comes as US President Donald Trump has imposed a 50% tariff on many Indian goods, a move that has been widely condemned by the Indian government and is expected to have significant economic consequences.
Trump's decision to raise tariffs on Indian goods stems from his dissatisfaction with India's continued purchase of Russian oil, despite the ongoing war in Ukraine. The US President has accused India of "fueling the war machine" and has warned of further penalties if New Delhi does not alter its course. These additional tariffs, which took effect August 7, 2025, stack atop a separate 25% duty already in place, bringing the total to 50% for many products. Exemptions exist for goods targeted under sector-specific duties like steel and aluminum, and categories that could be hit later, like pharmaceuticals and semiconductors.
India has strongly criticized Trump's decision, calling the move "unfair, unjustified, and unreasonable". The Ministry of External Affairs (MEA) has stated that India's imports are based on market factors and are essential for ensuring the energy security of its 1.4 billion people. The MEA also pointed out the hypocrisy of the US, noting that many other countries, including those in Europe, continue to trade with Russia.
The imposition of higher tariffs is expected to have a detrimental impact on India's economy. Analysts predict that India's GDP growth could decline by up to 1% as a result of the increased levies. Key export sectors, such as textiles, footwear, and gems and jewelry, are expected to be particularly hard hit. The garment industry in India has warned of potential mass layoffs due to the reduced competitiveness of Indian goods in the US market.
Netanyahu's intervention in the trade dispute comes as a welcome sign of support for India. In a recent statement, the Israeli Prime Minister expressed hope that India and the US will soon find a solution to the escalating tariff dispute. He emphasized the strong relationship between the two nations, stating that there is a "basic understanding in Washington DC that India is a solid partner". Netanyahu suggested that with the common ground that exists between India and the United States, the two sides should be able to sort out the issue.
The ongoing trade dispute has raised concerns about the future of India-US relations. Despite the strong strategic partnership between the two countries, trade talks have collapsed over disagreements about opening up India's agriculture and dairy sectors. The US has long sought greater access to the Indian market, while India has resisted these demands in order to protect its domestic industries.
In the face of rising tariffs and trade tensions, India has vowed to take all necessary actions to safeguard its national interests. This includes exploring alternative markets for its exports and continuing to pursue its energy security objectives. The Indian government has also signaled its willingness to engage in further negotiations with the US, but it has made it clear that it will not compromise on its core principles.
The situation remains fluid, and it is unclear how the trade dispute between the US and India will ultimately be resolved. However, Netanyahu's support for India underscores the importance of India's relationships with other key global players. As India navigates these challenging times, it will likely rely on its strong diplomatic ties and its growing economic strength to weather the storm.
