India now incurs higher U.S. tariffs than China. New Trump foreign policy?
U.S. President Donald Trump and Indian Prime Minister Narendra Modi arrive for a joint press conference in the East Room of the White House in Washington, DC, on February 13, 2025.
Jim Watson | Afp | Getty Images
The easing of tensions between China and the US after their leaders met in South Korea last Thursday stands in stark contrast to the chill in Washington-New Delhi relations, with India now subject to higher US tariffs from Beijing.
Experts said the strategic relationship between India and the US, built over two decades, has eroded significantly.
Atman Trivedi, partner and leader of DGA-Albright Stonebridge Group’s South Asia Practice, said trust between the two countries “may take years to rebuild.”
High tariffs, a $100,000 fee for H1B visas and repeated claims by US President Donald Trump to broker a ceasefire between India and Pakistan are among the issues that have soured ties between New Delhi and Washington in recent months, experts say.
“President Trump does not value India as much as previous presidents as a partner in balancing China,” said Raymond Vickery Jr., senior partner and director of India and the emerging Asian Economy at the Center for Strategic and International Studies.
He said that US foreign policy from President Bill Clinton until recently, including Trump’s first term, has consistently valued “democratic India over autocratic China”, adding that the approach towards India has now shifted from strategic altruism to “transactionalism”.
Meanwhile, relations between the United States and China appear to be improving.
“My G2 meeting with Chinese President Xi was a great meeting for both countries,” Trump said in a post on Truth Social on Saturday, adding that it would lead to “eternal peace and success.”
Shortly after, US defense secretary Pete Hegseth said in X that China and the US agreed to “establish military-military channels” to resolve any problems and reduce tensions.
Trump and Chinese President Xi Jinping agreed to a trade truce at a high-stakes meeting in South Korea on Thursday; At that meeting, Washington gave Beijing a cut of fentanyl-related tariffs from 20% to 10%, and the overall rate on Chinese goods fell to about 47%.
China now pays lower tariffs than India.
In August, the US imposed 50% tariffs on India, including 25% secondary duties on oil purchases from Russia. India called the move “unfair, unjust and unreasonable” while calling US trade ties with India a “completely one-sided disaster”.
US President Donald Trump met with Indian Prime Minister Narendra Modi at the Oval Office of the White House in Washington DC on February 13, 2025.
Jim Watson | Afp | Getty Images
“Chemistry at the leadership level is lacking for now, and the impact of this disconnect on the US-India relationship cannot possibly be overstated,” Trivedi added.
Addressing corporate leaders at the Asia-Pacific Economic Cooperation summit in South Korea during his visit to Asia last week, Trump said he threatened India and Pakistan with 250% tariffs if they did not cease hostilities.
26 civilians lost their lives in an attack carried out by militants in the Indian-controlled Kashmir region in April. India blamed Pakistan and launched a military offensive. four days of conflict This threatened to escalate into a wider war fueled by decades of tensions between the two countries.
“The strategic relationship between India and the US is under pressure this year not only because of tariffs, but also because of Washington’s stance in the conflict with Pakistan and the apparent warming of the US. [U.S.] “He has ties to the Pakistani military,” said Alexandra Hermann, head of Southeast Asia Research at Oxford Economics.
Trump’s claims are embraced by Modi’s political opponents, including opposition leader Rahul Gandhi. Modi “scared” Gandhi reportedly said it belonged to US President Donald Trump at a political rally in Bihar on Sunday.
Hermann added that India’s challenge now will be to find its place between the two economic superpowers.
“While New Delhi would benefit from greater access to US demand, its dependence on China is unlikely to ease in the near term, given the still extreme uncertainty around trade policy and the costs of relocating supply chains,” he said.
Putting aside strained trade ties, the United States and India signed a 10-year “US-India Major Defense Partnership Framework” on Friday.
While Hegseth said in
Experts warn that if the US continues its transactional approach towards India, it will drive the two further apart and compromise the strategic interests of both.
“Trump’s policy will push India towards Russia, the Global South and even China. This will not be in the interest of either India or the United States,” said Vickery Jr. of CSIS.
