India's Tariff Tangle

An Economic Diplomacy Setback

- 

The sudden imposition of 50% U.S. tariffs on Indian exports has struck the Indian economy like an unexpected monsoon squall—fierce, disruptive, and leaving little time to prepare. What makes this blow even more painful is that it comes not from a historic rival, but from a partner in whom India has invested years of diplomatic warmth.

For many, the hope that the much-publicised "Trump-Modi friendship" could shield the nation from such punitive measures has now given way to a sobering truth: in global politics, personal chemistry cannot substitute for structured, institutional strategy.

The official explanation from Washington is blunt: India’s continued purchase of discounted Russian crude oil is, in its eyes, indirectly financing Moscow's’ war effort in Ukraine. The White House has framed this not merely as an economic dispute but as a "national security issue.” Yet the sting is sharpened by the perception of selective application. China, a far larger importer of Russian oil, has not faced comparable tariffs, leading many observers to conclude that India was viewed as a more convenient target—one that could be pressured without triggering wider economic fallout.