Washington’s 50% tariff increase continues to strain US–India ties
What Prompted the Call?
Indian Prime Minister Narendra Modi confirmed on Thursday that he held another telephone conversation with US President Donald Trump, marking their third call since Washington imposed punitive tariffs of up to 50% on key Indian exports.
The Biden administration’s decision was triggered by India’s continued Russian oil purchases, despite US sanctions on Russian energy giants like Rosneft and Lukoil.
What Did They Discuss?
Modi said the call involved a review of “progress in bilateral relations” and “regional and international developments.”
The White House acknowledged the call but offered no further details.
The tariffs currently affect textiles, chemicals, shrimps, and several food-related exports, major components of India’s trade with the United States.
Why Are Tariffs the Central Issue?
Trade negotiations stalled in July after:
- India refused to open markets to US agricultural imports, including soybean and grain sorghum
- New Delhi resisted acknowledging Trump’s mediation claims during an India–Pakistan conflict
Since then, Indian refiners have begun slowly reducing Russian oil purchases to avoid violating US sanctions but not fast enough to satisfy Washington.
Who Else Is Pressuring India?
The situation became more complex after Russian President Vladimir Putin’s visit to New Delhi last week.
During the visit, Russia:
- Offered uninterrupted fuel supplies to India
- Pushed back against US pressure
- Reaffirmed strategic ties and long-term energy cooperation
This has emboldened New Delhi but complicated negotiations with Washington.
Where Do Trade Talks Stand Now?
US Deputy Trade Representative Rick Switzer held meetings in New Delhi this week.
The US Trade Representative’s office has not commented, but one US official admitted it was uncertain whether a deal could materialise before year-end.
Trade experts, including former US Commerce Department official Ryan Majerus, believe an agreement is still likely because of India’s growing strategic weight in global markets.
How Are Tariffs Impacting India?
Indian government data shows:
- Exports to the US fell nearly 9% in October
- Shipments totalled $6.31 billion (down from $6.91 billion YoY)
- Slight increase from September’s $5.47 billion, but still below normal levels
Meanwhile, Washington continues to push New Delhi to:
- Lower tariffs on US agricultural goods
- Reduce non-tariff barriers
- Further scale down Russian energy imports
A Three-Way Tug of War: US, India, Russia
India is now navigating a complex geopolitical triangle:
- The US, seeking to limit Moscow’s global outreach
- Russia, offering cheaper and uninterrupted energy supplies
- India, attempting to maintain strategic autonomy without sacrificing economic interests
The three phone calls between Modi and Trump signal New Delhi’s urgency, but also Washington’s unwillingness to back down without concessions.
Domestic Pressure on Modi
With export-dependent industries feeling the impact of US tariffs, Modi faces political and economic pressure:
- India cannot abruptly end Russian oil imports without triggering fuel price inflation
- But continued Russian purchases risk deeper US trade penalties
The resulting squeeze is testing India’s long-claimed stance of strategic independence.
Will Tariff Relief Happen?
Experts believe a deal is possible, but only if:
- India reduces Russian crude imports further
- Washington softens its stance on agricultural access
- Domestic political narratives in both countries allow room for compromise
Until then, the relationship remains cooperative but strained under strategic competition.