India is one of the countries that have to pay the highest customs taxes to the United States. India’s Prime Minister Narendra Modi and US President Donald Trump actually get on well. But now it crises.
Anyone who goes through the embassy district of New Delhi meets an unexpected symbol: a more than two meter high statue from Lenin. A relic from a time when India was politically and economically strongly based on the Soviet Union. Today it is Putin’s Russia that is considered a strategic partner in India. Since the beginning of the Ukraine War, cheap Russian oil has been flowing to India – a decisive factor for the current economic growth of the subcontinent.
But that is exactly what India is causing trouble with the United States. As of today, 25 percent inches are initially due for US imports from India. And that’s not enough. Donald Trump stated his threat and imposed additional punitive tariffs: in three weeks, the sentence even doubles to 50 percent according to a decree. For the US president, it is clear: Anyone who binds themselves closely to Moscow is financed in Putin’s war in Ukraine.
“Measures unfair, unjustified And inappropriate “
The Indian Ministry of Foreign Affairs reacted with a written statement last night. It says: “We have already made our position on these topics clear – including the fact that our imports are based on market conditions and serve the overarching goal of ensuring energy security of 1.4 billion people in India.”
It is therefore extremely unfortunate that the United States has decided to impose additional tariffs against India, it said. “We confirm that these measures are unfair, unjustified and inappropriate.” The country will now take all the necessary steps to protect its national interests.
In Indian media, it was recently speculated whether the oil business could be reduced with Russia. But the Indian government quickly made it clear that relationships with Russia were long -term and not to be influenced by third countries. You don’t let yourself be talked into your own trade relationships. A statement that also stands for the grown foreign policy self -confidence of the country.
US market system relevant to many Indian industries
India exported annually to the USA worth around 75 billion euros – including jewelry and gemstones. The new tariffs will hit many small and medium -sized companies hard. Dealers like Sanjeev Malhotra are therefore worried: “We export jewelry worth almost ten billion dollars to the USA. If they become a quarter more expensive, the effects will be significant – for buyers and sellers.”
The US market is systematic for many Indian industries-for example for the huge textile industry or the pharmaceutical division, which, among other things, delivers generic generic for the American market. India was one of the most important trading partners in the United States in 2024.
Shortly before Trump signed the decree, economic expert Ajay Srivastava had said comparatively calmly: “These are Donald Trump’s usual methods if he wants to exert pressure. I think there is no point behind his announcements, but a comma.”
Run further conversations
This will now show that there are still three weeks until the extreme tariffs grip. Trump could have created a buffer to achieve a deal with India until August 27th. decided. Further talks are currently underway-a US delegation will arrive at the planned trade agreement in Neu-Delhi at the end of the month.
It was only in February, when visiting modis in Washington, Trump described the relationship as a – so literally – “wonderful relationship”. One thing is clear: If the extreme tariffs remain, the partnership between the two countries will be put to a serious test.
