India vs. US: Who stands to lose more in the trade dispute? DW 08/28/2025
Briefly

Narendra Modi's June 2023 US state visit exhibited strong ceremonial ties and high-level praise for the bilateral relationship. A later White House meeting with Donald Trump showed warmth and deal-making talk, but relations deteriorated within months. By August 27, most Indian goods entering the US faced 50% tariffs after failed trade negotiations and broader US tariff announcements, plus a separate 25% tariff related to India's Russian oil purchases. The escalation alarms US officials who view India as vital for Indo-Pacific stability and prompts deep economic concern in India, while analysts warn that the US approach risks political damage to Modi.
When Indian Prime Minister Narendra Modi made a state visit to the US in June 2023, the pomp and pageantry reflected how keen the US side was to promote the countries' strong ties. "I've long believed that the relationship between the United States and India will be one of the defining relationships of the 21st century," said then-President Joe Biden when welcoming Modi.
As of August 27, Most Indian goods going into the US market now face 50%, one of the highest rates in the world. Tensions escalated swiftly after the sides failed to strike an agreement during trade talks following Trump's major announcement of tariffs against trading partners in April. Matters got worse when Trump announced an additional 25% tariff on India over its purchases of Russian oil.
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