President Donald Trump is employing tariffs as a strategic tool. He has announced a 50% tariff on Indian goods. Starting August 27th, an additional 25% tariff will be implemented, effectively bringing the total tariff on Indian products in the U.S. to 50%, when combined with the existing 25% tariff imposed on August 6th.
Trump’s second term is marked by a shift away from diplomacy and a disruption of traditional alliances. His decision to impose a 50% tariff on Indian goods raises questions about its justification. The context of the Russia-Ukraine war raises further questions. Is India being targeted under this guise, and is India prepared for Trump’s actions?
India, once a close ally and considered America’s most trusted partner in Asia, has seen this trust eroded by Trump’s trade policies.
Driven by his ‘Make America Great Again’ agenda, Trump’s actions seem to lack a clear understanding of right and wrong. This is evident in his decision to first impose a 25% tariff on August 6th, followed by an executive order for an additional 25% tariff starting August 27th.
Trump’s Executive Order states that it is implemented to counter the threat from Russia, referencing Executive Order 14329 enacted on August 6th. The tough stance against India is linked to the ongoing Russia-Ukraine conflict, which Trump had initially pledged to resolve during his first term.
Meetings with Putin in Alaska and with Zelensky and European Union leaders in the White House have yielded no concrete results.
In response, Trump has employed a 50% tariff on India to put pressure on Russia. The initial 25% tariff from August 6th has been compounded by an additional 25% tariff set for August 27th, resulting in a total 50% tariff imposed by the Trump administration.
India is a major global market, and the U.S. has a large economy. India is not willing to yield to Trump’s demands.
Statements from Prime Minister Modi indicate that India will not surrender to these tariff policies. This stance is reinforced by a German magazine report that suggests an American delegation sought to negotiate in New Delhi regarding the tariffs, but India rejected the talks. Consequently, the U.S. increased the tariff to 50%. India is a market that attracts interest from across the globe.
The U.S. has strained trade relations with India by imposing such high tariffs. India remains a significant trading partner for the U.S. In 2024-25, India was the largest trade partner for the U.S., with Indian exports accounting for 2% of its GDP.
