Trump’s Tariff Threat: New Cold War Chills Indo-US Ties
Former US President Donald Trump’s threat to hike tariffs on Indian goods has sent shockwaves through the bilateral relationship. The move, announced on August 5, 2025, stemmed from Trump’s accusation that India is aiding Russia by purchasing its oil.
India’s Ministry of External Affairs (MEA) swiftly responded, terming the tariff imposition as unjustified. The MEA highlighted that several other nations continue to engage in trade with Russia, underscoring the essentiality of India’s oil imports for its energy security.
The US imposed a 25% tariff on a range of Indian goods, with warnings of further punitive measures. This escalation marks a significant deterioration in Indo-US relations, raising concerns about the future of strategic partnerships and global trade dynamics.
This renewed trade friction comes at a critical juncture, potentially impacting India’s economic growth and its strategic calculus in a rapidly shifting geopolitical landscape. The incident underscores the complexities of navigating global power dynamics and the potential for economic leverage to influence foreign policy decisions.