India-US Tariff War: India takes tough stand on threats...diplomatic relations may get derailed

Posted on 8th Aug 2025 by rohit kumar

India has also adopted a tough stance on repeated threats by US President Donald Trump to buy oil from Russia and is now imposing an additional tariff of 25 percent as a penalty. This is also clear from Prime Minister Narendra Modi's message of not compromising on the interests of farmers. Analysts believe that the tariff war can derail the progress made in India-US diplomatic relations in a few decades.

 

On the current situation, analysts think that the relations between the two countries are at the lowest level since India's nuclear test in 1998. Analysts and officials believe that due to domestic political pressures, both sides are under pressure to stick to their respective stands. While Trump wants to raise his slogan of Make America Great Again through the tariff war, PM Modi has made it clear that India will not bow down to American threats. India's effort to increase closeness with Russia and China is also a part of the strategy to overcome the crisis caused by tariffs.

 

Analysts say that the tough stand of both sides can also create obstacles in other areas of cooperation. Indian government sources said that Trump's taunt that India may have to buy oil from its archenemy, Pakistan, has also been disliked by New Delhi. This is the reason why India has strongly retaliated by accusing the US of adopting a double standard regarding the purchase of uranium hexafluoride, palladium, and fertilizers from Russia. However, sources say that New Delhi is well aware that further escalation of tension can prove to be harmful in matters other than trade.

 

It is a very challenging time for India.

 

Analysts say that this time is also very challenging for India. Unlike China, it does not have any power like supply of rare earth minerals, which can force Trump to improve the terms of any trade agreement. Not only this, there is a possibility of a situation of conflict on issues like work visa for technical professionals and foreignization of services.

 

Emphasis will have to be placed on strong relations with rivals.

The government source said that there is a need to gradually improve relations with America. India should also focus on negotiating with those countries that are suffering due to Trump's tariffs. These include the African Union and the BRICS group. Observer Research Foundation analyst Alexei Zakharov believes that Russia can try to restore the relations of the Russia-India-China trio.

 

One-sided decision, no logical reason

 

Dammu Ravi, Secretary of Economic Relations in the Ministry of External Affairs, said that this decision is unilateral. There is no logical reason for taking such a step. The senior diplomat said, We have to overcome this phase. He said, we were very close to finding a solution, and it has been put on hold for some time. Talks are still going on. Therefore, it is expected that solutions will emerge over time given mutually beneficial partnerships. He also said that this will not have much adverse effect on Indian industries.

 

Ashley Tellis of the Carnegie Endowment for International Peace in Washington said, "We are heading towards an unnecessary crisis that will undo a quarter of a century of hard-earned gains with India." Analysts say that in the last few decades, including Trump's first term, the US administration has developed relations with India as an important partner as part of long-term efforts to counter the growing dominance of China.