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Trump’s New 25% India Tariffs: A Drowning Superpower’s Last Moves?

Abbas Hashemite, August 01, 2025

After speaking bitterly about the Indian government on several occasions, Trump has finally imposed new tariffs on the country, leading to further deterioration of relations between the two countries.

Trump’s New 25% India Tariffs

Shifting Tides in India-US Relations

The impulsive US President Donald Trump is known for his volatile policy decisions. The Indian Prime Minister, Narendra Modi, and Trump enjoyed cordial relations during the latter’s first term. However, Trump’s approach towards India has taken a rapid turn during the first few months of his second tenure. The Indian Prime Minister was one of the first few leaders to visit Washington after the re-election of Donald Trump as the 47th US President. The Trump administration offered numerous deals to Prime Minister Modi during this time to strengthen its relations with India.

However, the evolving global geopolitical landscape has altered this US approach towards India. In a recent development, US President Donald Trump has announced the imposition of 25 percent new trade tariffs, along with an unspecified penalty, on India if the two sides do not reach a deal by August 1, a strong US ally in the South Asian region. While announcing these new tariffs, he stated, “While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,”.

The administration is making moves to discourage India’s deeper engagement with BRICS

He further stated, “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!” The US Census Bureau reported that in 2024, Washington faced a $4.58 billion trade imbalance in goods with New Delhi. This demonstrates the real reasons behind the United States’ imposition of high tariffs on India. The US sought to use India as a regional proxy against China and other regional rivals. However, New Delhi’s close cooperation with Moscow over a broad spectrum of issues has frustrated Washington.

The Defense Dilemma and the Rise of BRICS

The Trump administration sought to persuade the Modi government to purchase F-35 fighter jets from the United States. Donald Trump saw the recent downing of French-made Rafale fighter jets, during the recent India-Pakistan war, as an opportunity to sell its F-35 aircraft to India. However, Russia also offered to sell SU-57 aircraft to India. Russia offered a more lucrative deal to New Delhi, including technology sharing and local manufacture of the aircraft in India. Moreover, Russia-India bilateral trade surged to a record high of $68.7 billion in the FY 2024-25, marking a significant milestone in economic relations between the two sides.

Moreover, India’s active participation in BRICS has also outraged the United States. After the recent BRICS summit in Rio de Janeiro, the US President threatened the BRICS nations with additional 10 percent trade tariffs. Despite his continuous warning and threats, all the BRICS members are steadfast in their commitment to alter the US-led unipolar and cruel world order. In an attempt to reduce reliance on the dollar, BRICS countries are committed to creating a unified currency for intra-bloc trade. India is set to host the 2026 BRICS summit, despite threats and sanctions by the United States.

Desperation, Diplomacy, and Decline

The US President Donald Trump has also altered his approach towards India due to evolving regional dynamics. The United States seeks Pakistan’s cooperation on different Middle Eastern and South Asian issues. Israel’s recognition by all the Muslim countries is one of the biggest ambitions of the Trump administration. Soon after his re-election, Trump stated that Saudi Arabia would normalize its relations with Israel by the end of his tenure. His efforts to establish cordial relations between Israel and the Gulf states in his first term as the US President also reflect his commitment to this cause.

Moreover, the rising rift between Iran and the United States, along with its regional proxy – Israel – has also compelled Washington to improve its relations with Islamabad. The Trump administration seeks to isolate Iran through cooperation with regional countries. Therefore, Donald Trump has shown a clear shift in his policy towards India and Pakistan. Another major reason for the increasing gulf between the US and India is the latter’s consistent denial of Trump’s alleged role in establishing a ceasefire in the recent India-Pakistan war. President Trump has always been known for his narcissistic personality. Being recognized as a peacemaker in history is one of his major ambitions. New Delhi’s denial of his role in establishing peace between the two South Asian nuclear powers has shattered this dream. The actual aim of President Trump is to gain unwavering Indian support in all regional and global issues.

The administration is making moves to discourage India’s deeper engagement with BRICS. In pursuit of this ambition, President Trump has also imposed sanctions on Brazil. Trump has also given a 12-day ultimatum to Russia to sign a ceasefire deal with Ukraine. However, all these dictatorial policies of the Trump administration resemble the desperate efforts of a drowning superpower. Through such policies and moves, Trump is only hastening the rise of a new multipolar world order. Due to this consistent betrayal of friends and allies, the Trump administration is pushing the developing nations towards the rising Eastern powers, leading to further diplomatic isolation of the United States.

 

Аbbas Hashemite – is a political observer and research analyst for regional and global geopolitical issues. He is currently working as an independent researcher and journalist
 

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