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No need to be alarmed, this difficult phase will pass
Business Standard
|August 11, 2025
Last week, relations between India and the United States (US) nosedived after President Donald Trump announced a 25 per cent punitive tariff on goods exported from India, effective August 27, in addition to the 25 per cent reciprocal tariffs that took effect on August 1.
This difficult phase will pass as both countries have enough stakes in maintaining good relations.
Few believe Trump's excuse that he is punishing India for buying crude oil from Russia. He is more hostile towards India after Pakistan nominated him for the Nobel Peace Prize, permitted trading in his cryptocurrency and allowed the US to explore oil in Pakistan, while India refused to give him credit for bringing about a ceasefire that ended the brief military engagement between India and Pakistan, following the Pahalgam terrorist attack.
Trump said that he is halting the bilateral trade negotiations with India after Prime Minister Narendra Modi said that the interests of our farmers, fishermen, and milk producers would not be compromised. Later, India, Brazil, China, and Russia seemed to be drifting closer. Trump announced that he will meet with Russian President Vladimir Putin in Alaska on August 15 to discuss an end to the war in Ukraine.
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