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Relations with America - Trump

Donald Trump "ruined" US-India relations in his second term, with actions during his second presidential term causing a significant deterioration and friction in the relationship. India was previously seen as a partner of great significance as the US seeks to strengthen relationships with Asian nations sceptical of China’s growing regional power. But in 2025 the US imposed tariffs as high as 50 percent on goods from India – among the highest announced by the Trump administration on scores of foreign nations – and criticised India for its purchase of Russian oil. But India pushed back against the severe tariffs imposed by Washington with Commerce and Industry Minister Piyush Goyal stating that New Delhi “will neither bow down nor ever appear weak” in its economic relationships with other countries.

The US has apparently “lost India and Russia to deepest, darkest, China,” President Donald Trump said 05 September 2025 in a post on Truth Social. The message included a photo of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi walking alongside Chinese leader Xi Jinping. Trump wished the three a “long and prosperous future together.” The leaders had gathered at the Shanghai Cooperation Organization summit in Tianjin, China. Putin remained afterward to attend commemorations of the 80th anniversary of World War II in Beijing, where he and Xi presided over a military parade joined by other foreign dignitaries. Trump accused Russia, China and North Korea – whose leader Kim Jong-un was also present – of “conspiring” against the U.S.

Trade talks between both nations went on for several months before they were suspended in August 2025 over US demands to open India’s agriculture and dairy sectors. Indian Prime Minister Narendra Modi spoke up for the country’s farmers. “For us, our farmers' welfare is supreme,” he said last week. “India will never compromise on the wellbeing of its farmers, dairy sector and fishermen. And I know personally I will have to pay a heavy price for it.” Commerce Minister Piyush Goyal described agriculture as the “soul of Indian civilization,” adding: “Our farmers’ welfare will be primary to our trade negotiations... we will never compromise with the interests of our farmers.” Farmers groups in India have called for a boycott of certain US products over Washington’s latest tariffs and demands that New Delhi open up its agricultural market to American companies. Agriculture and its associated sectors is the largest source of livelihood in India. Around 70% of the country’s rural households depend primarily on agriculture for their livelihood, with 82% of farmers being small and marginal.

Stunned Indian employees rushed to get tickets to the US, while others tried getting off planes at American airports after US President Donald Trump’s sudden announcement of a $100,000 work visa fee. An executive order signed by Trump on 19 September 2025, introduced the annual applicant fee for H-1B visas for skilled foreign workers. Over 70% of them are issued to professionals from India, the world’s most populous country. The order stated that the fee hike was needed to stop the “abuse” of the program by some companies, which allegedly use it to suppress wages and sideline Americans job applicants. “We need great workers, and this pretty much ensures that that is what is going to happen,” the president said. Until now, payments for H-1B visas ranged from $2,000 to $5,000, depending on the size of the employer and other costs; 85,000 such permits are granted every year. The think tank Global Trade Research Initiative said the high application fee will hurt the US more than India. These sentiments were echoed by Indian businessmen.

In August 2025, the Trump administration imposed a 50% tariff on most Indian exports. This followed an initial 25% tariff placed in early August as a "penalty" for India's continued purchase of Russian oil. This trade action has been called a "trade embargo" by some analysts due to its severity. Trump publicly criticized the trade imbalance with India, calling the relationship "a totally one sided disaster". He has accused India of having high tariffs and of taking advantage of the US. The 50% tariff is seen as punishment for India's decision to continue purchasing Russian oil and arms. This has led to India strengthening its relationships with other major powers, including Russia and China. The punitive tariffs had a devastating effect on India's economy, threatening jobs and erasing a projected one percentage point from GDP growth. This has significantly impacted key export sectors such as textiles, gems, and footwear.

Several diplomatic incidents created friction. Trump's public insistence that he brokered a ceasefire between India and Pakistan was contradicted by India, which denied any US mediation. His administration hosted Pakistan's powerful army chief at the White House in mid-2025, an event that New Delhi reportedly viewed as a "slap in the face". Despite initial cordiality with Prime Minister Narendra Modi, including a pre-election visit to the US, the relationship has soured.

On 30 August 2025, the New York Times reported that relations between Prime Minister Narendra Modi of India and President Trump were at a low point. As part of his quest for a Nobel Prize, President Trump had repeatedly campaigned and emphasized his claimed role in stopping numerous conflicts around the world, including the hostilities between India and Pakistan. This included a 10 May 2025 statement by the US Department of State claiming that a US-brokered ceasefire between India and Pakistan had been reached, putting a stop to India's Operation Sindoor.

In turn, India consistently and firmly rejected that the US had played any mediation role in the ceasefire with Pakistan. India's policy for decades has been that Pakistan, and the issue of Kashmir in particular, were to be dealt on a bilateral basis, without any third-party mediation.

According to the transcript of India's Foreign Secretary's statement on the telephone conversation between PM Modi and US President Trump:

Prime Minister Modi clearly conveyed to President Trump that at no point during this entire sequence of events was there any discussion, at any level, on an India-U.S. Trade Deal, or any proposal for a mediation by the U.S. between India and Pakistan. The discussion to cease military action took place directly between India and Pakistan through the existing channels of communication between the two armed forces, and it was initiated at Pakistan's request. Prime Minister Modi firmly stated that India does not and will never accept mediation. There is complete political consensus in India on this matter.

According to the New York Times piece, during the call, "Mr. Trump brought it up again, saying how proud he was of ending the military escalation. He mentioned that Pakistan was going to nominate him for the Nobel Peace Prize, an honor for which he had been openly campaigning. The not-so-subtle implication, according to people familiar with the call, was that Mr. Modi should do the same." The call followed a G7 meeting in Canada, during which:

"Mr. Modi declined an invitation from Mr. Trump to stop by Washington before he flew home. His officials were scandalized that Mr. Trump might try to force their leader into a handshake with Pakistan's army chief, who had also been invited to the White House for lunch around the same time. It was another clear sign, a senior Indian official said, that Mr. Trump cared little for the complexity of their issue or the sensitivities and history around it."

On 27 August 2025, the Trump administration put into effect an effective increase to 50% tariff on nearly of Indian goods exported to the United States, up from a previous 25% put into place in July. The stated increase was due to India's continued purchases of Russian oil. However, China which imports a greater amount of Russian oil remained unaffected by any similar type of punitive measure. Multiple press outlets reported that Trump had tried four times in the prior weeks to talk to PM Modi on the phone, only to have the latter decline to answer the calls.

Following the tariff announcement, PM Modi travelled to China for the first time in seven years.

On 01 September 2025 Trump criticised his country’s relationship with India as “very one-sided” and stated that New Delhi had offered to reduce tariffs on US goods to zero. Trump castigated New Delhi for what he depicted as a slanted economic relationship and India’s purchases of Russian weapons and oil in a social media post, marking a further deterioration of ties between the two countries.

In his first term, Donald Trump’s approach to U.S.–India relations was shaped by his emphasis on great-power competition with China, personal diplomacy with leaders, and a transactional style that tied foreign relations to economic and strategic bargains. Trump saw India as a key partner in counterbalancing China. His administration formally elevated India in U.S. strategy, for example through the 2017 National Security Strategy, which described India as a leading global power and central to the “Free and Open Indo-Pacific.” He expanded defense and intelligence ties, promoted arms sales (like MH-60R helicopters and drones), and deepened cooperation in the Quad framework with Japan and Australia.

At the same time, Trump often clashed with India on trade. He removed India from the Generalized System of Preferences (GSP) in 2019, citing unfair market practices, and frequently criticized India’s tariffs, calling it the “tariff king.” His “America First” trade policy led to frictions even as security ties grew stronger.

Trump cultivated a highly visible relationship with Indian Prime Minister Narendra Modi. Their rallies—“Howdy, Modi!” in Houston (2019) and “Namaste Trump” in Ahmedabad (2020)—were designed as spectacles of personal and political solidarity. Both leaders leveraged these events domestically: Modi showcased U.S. support for India, while Trump appealed to the Indian-American diaspora in the U.S.

Trump supported India during its clashes with Pakistan (after the 2019 Pulwama attack) and leaned toward India’s position in its disputes with China (especially after the 2020 Galwan Valley clash). However, he also offered to mediate on Kashmir, which India firmly rejected. His administration also tightened visa rules (notably H-1B visas), which created anxieties in India’s tech sector.

Trump’s India policy was strategically warm but economically contentious. He emphasized India as a security partner against China, showcased close ties with Modi, but pursued hardline trade policies that complicated the partnership.

While the US Embassy made statements in 2005 affirming the "enduring friendship" between the nations, the path forward remained unpredictable. The friction jeopardized decades of bipartisan efforts to strengthen the US-India strategic relationship and undermines the "China Plus One" strategy of diversifying manufacturing away from China. Trump's unpredictability and focus on domestic priorities have been cited as destabilizing factors for the Quad alliance, which includes the US, India, Japan, and Australia.