President Donald Trump has imposed 50% tariffs on India's exports to the United States. This is far higher than most countries facing US tariffs. Explaining the punitive India tariffs, US Treasury Secretary Scott Bessent said: "India came to the table early. They’ve been slow rolling things. So I think that the president, the whole trade team has been frustrated with them. And also, you know, India, India has been a large buyer of sanctioned Russian oil that they then resell as refined products. So, you know, they have not been a great global actor".
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| Indian Cartoonist Satish Acharya on Trump-Modi Dialog. Source: Satish Acharya |
Since taking office in January 2025, President Trump has been signaling his intent to apply tariffs on India's exports repeatedly. Trump has been singling out India as a country with the highest tariffs it applies on exports from the US.
Indian cartoonist Satish Acharya published a caricature of Modi-Trump conversation portraying Modi's ignorance or pretense of ignorance of what Trump said to him. The cartoon shows Modi thinking Trump was heaping "taarif" (praise) on him when in fact Trump was threatening to impose high tariffs on India. As an aside, tariff originates from the Arabic word "taʿrīf" (تعريف), which means "notification," "definition," or "announcement". This term probably entered the European lexicon through interactions between Arabic-speaking merchants and European traders in the medieval Mediterranean region.
Cartoons aside, it's clear that Mr. Modi failed to take the Trump tariff threat seriously, and Indian negotiators dragged their feet hoping that Mr. Trump would flinch. Meanwhile, India's supporters in Washington continued to argue for a US policy of "strategic altruism" toward India that has characterized US-India ties since the beginning of the 21st century.
In a 2019 piece titled "The India Dividend: New Delhi Remains Washington’s Best Hope in Asia" published in Foreign Affairs journal, authors Robert Blackwill and Ashley Tellis argued that the Trump Administration should continue this US policy of "strategic altruism" with India that began with US-India nuclear agreement. They asked President Trump to ignore the fact that the US companies and economy have only marginally benefited, if at all, from this policy. They saw India as a "superpower in waiting" and urged Washington to focus on the goal of having India as an ally to check China's rise. They see Chinese support for India's arch-rival Pakistan and China’s growing weight in South Asia and beyond as a threat to India.
At the same time, Mr. Modi has suffered from delusions of personal rapport with Mr. Trump, describing him as "my friend Dolund Trump" at mass rallies in India. Modi and his supporters in Washington should have heeded the advice of Ambassador Kishore Mahbubani. "One hard truth that Indians have to contend with is that America has also had difficulty treating India with respect", wrote the Singaporean diplomat Kishore Mahbubani in his latest book "Has China Won?". "If America wants to develop a close long-term relationship with India over the long run, it needs to confront the deep roots of its relative lack of respect for India", adds Ambassador Mahbubani. It's not just Mahbubani who suspects the United States leadership does not respect India. Others, including former President Bill Clinton, current US President Donald Trump, former Secretary of State Hillary Clinton and CNN GPS host Fareed Zakaria have expressed similar sentiments.
President Trump has rejected all pleas from pro-India analysts for special treatment of New Delhi. Prior to his meeting with Prime Minister Narendra Modi at the White House in February this year, the US president described India as the "worst abuser of tariffs" and announced "reciprocal tariffs" on Indian imports to the United States. At the same time, Mr. Trump cracked down on both legal and illegal immigration from India. His administration is deporting thousands of illegal Indian immigrants in handcuffs and shackles on US military aircraft. Meanwhile, stringent new regulations on temporary work visas could significantly delay visa processing times and reduce the number of Indian workers employed in the United States on H1B visas.
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18 comments:
Gifts offered by "my priend Dolund Trump":
1) Insulting level of Tariffs
2) Countering Modi's narrative about the ceasefire
3) Inviting Asim Muneer for lunch twice
4) Handcuffing and deporting Indians in humiliating conditions
5) Suggesting that US companies should quit setting up shops in India
It is hard to imagine how priend Trumpuji can humiliate Modi so callously despite latter having foolishly campaigned for him with "ab ki baar, trump ki sarkaar". It looks like Modi and his bhakths overestimate the soft power aspect of India lby celebrating non events like doing Yoga in NY in front of flattering NRI crowds. The self image of India is light years away from that of rest of the world at this moment.
But I think concrete, low level cooperation between the countries are still strong (setting up of global capability centers etc.)
Excellent Riaz Sahib.
Pakistani or Urdu/Hindi meaning of تعريف is much different than Arabic meaning!
Everyone Knows Indian Economy is Dead Except Modi and Sitharaman, Says Rahul Gandhi - The Wire
https://thewire.in/politics/everyone-knows-indian-economy-is-dead-except-modi-and-sitharaman-says-rahul-gandhi
New Delhi: Hours after US President Donald Trump equated India with Russia and said that they can take their “dead economies down together”, Leader of opposition in the Lok Sabha Rahul Gandhi echoed his statement and said that the whole world knows this fact, except Prime Minister Narendra Modi and Union finance minister Nirmala Sitharaman.
“He [Trump] is right. Everybody knows that the Indian economy is a dead economy, except the prime minister and the finance minister. I am glad that President Trump has stated a fact. The whole world knows – India’s economy is a dead economy and the BJP has destroyed the economy. Why did they destroy it? To help Adani,” said Gandhi speaking to reporters outside the parliament on Thursday.
Gandhi’s statement came hours after Trump on Wednesday announced that a 25% tariff, plus a penalty, will be imposed on India starting August 1. The Union government has responded to it saying that it “will take all steps necessary to secure our national interest”. Later on Wednesday, Trump mounted a sharp attack and said, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” he said.
Gandhi said that the Modi government had “destroyed India’s economic, defence and foreign policy. They are running this country into the ground.”
Earlier on Tuesday, Gandhi in his speech during the discussion on the Pahalgam terror attack and Operation Sindoor, demanded that the prime minister show the courage to tell parliament that US President Donald Trump is a liar in response to his continued claims of having mediated a ceasefire between India and Pakistan.
Four days of military conflict between the two countries following Operation Sindoor was brought to an end, according to Trump, after he used trade as leverage and brought the two countries back from the brink of a nuclear war. Modi in his reply said no world leader had asked Operation Sindoor to be stopped but did not name Trump.
“The foreign minister, while giving a speech, says that our foreign policy is very good. On one hand, America is criticising India, and on the other hand, China is after us. When you send your delegations around the world, no country condemns Pakistan. How are they running this country – they don’t even know how to run a country, there is total confusion,” said Gandhi on Thursday.
“Trump has said 30-32 times that he brokered a ceasefire. Trump has also said that five Indian jets have been shot down, and now he is talking about imposing a 25% tariff. Have you asked yourself why Narendra Modi is unable to respond? What is the actual reason? Who is in control – understand the situation.”
Later on Thursday Gandhi also said in a statement on X that the Indian economy is dead. “The Indian economy is dead. Modi killed it,” he wrote.
“Adani-Modi partnership, Demonetisation and a flawed GST, Failed “Assemble in India”, MSMEs wiped out, Farmers crushed – Modi has destroyed the future of India’s youth because there are no jobs,” he wrote.
Prof Mohsin Raza Khan says there are hard times ahead for India
https://youtu.be/sTwCkumVniE?si=kDWaatKq8CCZ6sB5
The US announced a 25% tariff on Indian goods. Professor Mohsin Raza Khan explains what this really means for our economy, our jobs, and our foreign policy.
6) Telling Microsoft and Google to hire fewer Indians.
7) The G7 countries initially invited the Indonesian president to the G7 meeting. The Indonesian president declined. A last-minute invitation was sent to Modi, and Modi immediately agreed to attend. When Modi was on his way to the meeting, Trump left early for the United States, totally ignoring Modi.
8) Telling the Indian reporter in the White House, in the presence of Modi, that he couldn't under his English and didn't answer his question.
Yes, just about everyone except Trump knew that tariff is an Arabic word. He called it the most beautiful word in English.
It’s so embarrassing!
Christopher Clary
@clary_co
The core reality of India’s foreign policy dilemma is this: Russia is too weak and too backward to provide India what it needs to ascend, the EU is militarily incapable and riven by its own divisions, China is too strong, and the US is erratic.
https://x.com/clary_co/status/1953062441215984120
Christopher Clary
@clary_co
Why is the US erratic? In part because it can be. It is quite powerful and far away from the most threatening other great powers (China and Russia). India is also not lucky in this regard sharing a long disputed border with the most powerful of the threatening great powers.
https://x.com/clary_co/status/1953088204518600958
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Christopher Clary
@clary_co
“Amitabh Kant, until recently Mr. Modi’s envoy for dealing with the Group of 20 economies, said, ‘[E]ven if the trade issues are sorted out, the trust would have been lost forever.’” https://www.nytimes.com/2025/08/08/world/asia/modi-india-trump-china-tariffs.html
https://x.com/clary_co/status/1954511540368912889
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AI Overview
According to recent news reports, India's Prime Minister Narendra Modi has reportedly been experiencing a period of "soul-searching" following what has been described as the collapse of his efforts to improve ties with the United States and China.
Background
The New York Times reported that India's efforts to transform its relationships with the US and China have highlighted the limitations of India's influence on the world stage.
Prime Minister Modi acknowledged that he might face political consequences due to the ongoing trade dispute with the US.
Despite these developments, there are indications of renewed attempts to improve relations with China, with Modi scheduled to visit later this month for the first time in seven years. However, tensions remain due to border skirmishes and China's support for Pakistan's military escalation with India.
Impact
These events have led to a moment of introspection in India, revealing the constraints on its global power despite its large size and growing economy.
Recent developments
On Sunday, August 10, 2025, Prime Minister Modi indirectly criticized US President Donald Trump's "dead economy" comment during a public event in Bengaluru, emphasizing India's progress toward becoming one of the world's top three economies. He attributed this growth to a spirit of reform, performance, and transformation driven by clear intentions and honest efforts.
In summary, recent reports suggest that Prime Minister Modi and India are reassessing their foreign policy strategy and global positioning following setbacks in their relationships with the US and China.
@Mantou
There is nothing s uniquely so insulting to India as such in Trump's tariffs. One would expect that a country treats its giant neighbours with some respect. But he hot Brazil with 50% and canada with 35%, even though canada is a key westen ally..
But what makes all of this very painful for Modi and BJP is that they bragged a lot about their "priendship" and now there is a fair amount of Schadenfreude even within India.
Like it was written in an Indian newspaper, Nehru earned respect by building institutions, but Modi in his vanity though that the public hugging and praise in socal media would turn out to be something meaningful, which was not the case as seen in Op. Sindoor and now in Tariff issues.
But long term, maybe Indo US relationship may flourish due to common interests in Indo pacific if not for any other reasons.
@ Zen Germany
"But long term, maybe Indo US relationship may flourish due to common interests in Indo pacific if not for any other reasons."
India may not exist within the next three decades. Right now, India holds together pretty well, but if the appropriate factors manifest themselves, the country can break apart easily. The most important interest of India right now is to strengthen the glue that holds India together, rather than looking for faraway trouble like the Indo-Pacific. To put it in plain English, India should know its place and try to improve itself rather than chasing vanity.
The end of the friendship between Trump and India’s Modi - The Washington Post
https://www.washingtonpost.com/world/2025/08/11/india-modi-trump-friendship-alliance-trade-tariff/
Trump’s annoyance appears to have opened the door to anti-India sentiment from multiple quarters in the White House. For economic right-wingers such as Peter Navarro, Trump’s senior counselor for trade and manufacturing, long-held gripes about India’s protectionist economy and high trade barriers are finally seeing the light of day. And for the anti-immigration right — people including Stephen Miller, Trump’s deputy chief of staff — India is in the crosshairs as the largest beneficiary of the H-1B visa program, which offers skilled foreign workers a pathway to U.S. permanent residency.
Domestically, the Modi government is caught between a rock and a hard place. New Delhi’s best hope out of punishing U.S. tariffs is to negotiate a trade deal, but to do so, Modi faces a difficult political balancing act back home.
One of Washington’s main demands is to open the Indian market to U.S. agricultural crops and dairy products. But unfortunately for Modi, the country’s agriculture and dairy industries are the third rail of Indian politics: Any attempt to loosen the trade barriers protecting these two sectors is a surefire way to lose the next election.
Farmers, who account for around 45 percent of India’s labor force, are a critical constituency for Modi’s Bharatiya Janata Party (BJP). As Maya Prakash noted in a recent Washington Post opinion piece, one of the few stinging defeats in Modi’s 11-year premiership came in 2020, when his government passed legislation that would have potentially reduced farmers’ earnings, leading agricultural workers to mount widespread protests across northern India. After 16 months of highway shutdowns and routs for the BJP in state-level elections, the government was forced to repeal the bills.
Importing U.S. dairy — which may come from cows fed with animal-derived products such as tallow — is also a no-go for India, where an 80 percent Hindu population opposes animal-fed dairy on cultural grounds.
Though the domestic Indian opposition is no fan of Trump — opposition leader Rahul Gandhi called the tariffs “economic blackmail” on Wednesday — they know to pounce if Modi budges on agriculture or dairy. The “government needs to stand up straight and demonstrate some spine against this coercion and bullying,” Manish Tewari, a member of the opposition Congress party, told Indian media Thursday.
In the meantime, Modi will have to do his best to navigate tariff turbulence. During a rally on Aug. 2, Modi obliquely referred to the U.S. tariffs without mentioning Trump by name, exhorting his citizens to buy Indian-made goods “made with the sweat of the people of India” while unveiling a new slogan, “Vocal for Local.”
But talk, especially defiant talk, is cheap in Indian politics. In 2020, after Chinese and Indian soldiers clashed in a deadly border dispute, Modi announced an initiative to boycott Chinese imports and build an “Atmanirbhar Bharat” — a self-reliant India. Even so, Indian imports from China surged from $65 billion in 2020 to $113 billion in 2024.
India was written off by British with contempt, after the independence. But India held together and made great progress. Only thing is that it is holding together for the same reasons which Hindu nationalists detest. A federal, secular, diverse country which has some strong civilian institutions other than army (with army under control, unlike in pakistan or bangladesh). For those who want to see India disintegrated, best hope will be on RSS fascism whose anti Muslim and anti Dravidian actions can trigger a bigger backlash at some point. But that is pure speculation at this point.
Mantau, well said and apkai munh mai ghi shakar.
G. Ali
Zen, you are correct "A federal, secular, diverse ..." has held India together. So the question is what would happen with the errosion of these, specially secularism?
G. Ali
India's labor-intensive textile, jewelry, and auto parts industries are likely to be among the hardest hit by Trump's 50% tariffs.
https://www.dw.com/en/indian-workers-fear-economic-downturn-under-trumps-tariffs/a-73597048
According to the Diamond Workers Union Gujarat, there are about 800,000 to 1 million diamond workers in Gujarat, employed in roughly 6,000 diamond polishing units.
"The US is our single largest market, accounting for over $10 billion in exports — nearly 30% of our industry's total global trade. A blanket tariff of this magnitude is severely devastating for the sector," said Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council.
"For cut and polished diamonds, half of India's exports are US-bound. With the revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain — from small workers to large manufacturers," added Bhansali.
Big tariffs on the horizon
Trump last week added a 25% tariff rate to a previously announced levy of 25%, bringing the total to 50% for goods from India. The White House said India's continued purchases of Russian oil are enabling Russia's war machine in Ukraine, and are undermining US efforts to bring the war to an end. Russia is currently the single largest seller of Indian oil imports.
The US tariffs apply to Indian exports like gems, textiles, automotive parts and footwear. Electronics, smartphones and pharmaceuticals remain exempt, for now.
Even so, the tariffs threaten a significant portion of India's export economy to the US, which is valued at nearly $87 billion (€74.7 billion) annually, representing about 2.5% of India's GDP.
The 50% rate is due to take effect on August 27, leaving the door open for potential negotiations.
India was one of the first countries to initiate trade and tariff talks with the second Trump administration, when Prime Minister Narendra Modi met Trump in February.
The two leaders had then announced a target to double bilateral trade to $500 billion by 2030.
However, ties have now been strained by the new tariff rate and Trump's insistence that India stop buying Russian oil.
Textiles brace for impact
Millions are employed in knitwear and garment factories in the textile city of Tiruppur in the southern state of Tamil Nadu.
According to exporters' associations, about 30% of Tiruppur's exports go to the US, particularly in the cotton and knitwear segment. This amounted to $5.1 billion (€ 4.4 billion) in the last financial year.
The industry, which directly employs around 1.25 million workers in the wider textile belt of Tiruppur, Karur and Coimbatore, faces the risk of 100,000–200,000 job losses if exports contract in the coming months.
"With prices of Indian goods rising in the US due to these duties, trade is expected to suffer significantly. It will hit the industry and we will need to see how this plays out," K M Subramanian, President of the Tirupur Exporters' Association, told DW.
The tariffs are set to make Indian textiles more expensive for US buyers than those of competitors like Vietnam, Bangladesh, or Pakistan.
Tiruppur has a reputation for high-quality, eco-friendly knitwear and has established relationships with global brands like Walmart, GAP, and Costco.
"Standalone exporting companies will be hit first. When the first round of 25% tariffs was imposed, we were sent to the intensive care unit. But with the additional 25% penalty tariff because of Russian oil, it looks as if we have been placed in a coma," Kumar Doraiswamy of Eastern Global Clothing told DW.
"It has put exporters in crisis, which threatens jobs, revenues, and the global standing of India's textile sector," added Doraiswamy.
Auto parts exporters face headwinds
Similarly, India's automotive components sector faces the risk of declining orders as tariffsincrease costs for buyers in the US.
From 2024 to 2025, the US accounted for 27% of the $22.9 billion worth of auto components exported from India.
@G. Ali
Hard to say honestly..German Chancellor was saying that USA as they knew no longer exists, with erosion and abuses of institutions. This apply to a large extent for India as well. How this will turn out is anyone's guess. Military is strongly under control, but majoritarianism rules for now. Personally, I think next wave of globalization, driven by AI and diversification away from China could be net +ve for India. If current trend continues, profits are most likely to be reaped by select cronies.
As for relation with US/West, India and Pakistan have same issue, I believe. Culturally, they are too dissimilar to the west, so any bonding is likely to be transactional.
Scholar Stephen P. Cohen suggests that India and Pakistan have markedly different negotiating styles due to their contrasting perceptions of the relationship and their own roles in it.
Here's a breakdown of the differences Cohen highlights:
India's Perception of Dominance and Pakistan's Defensive Stance: Cohen observes that India has adopted a posture akin to the dominant power, while Pakistan has adopted a defensive, almost Israel-like stance.
India's Approach to Outside Intervention vs. Pakistan's Cultivation: While India generally shies away from outside interference in the conflict, Pakistan actively seeks to involve outsiders and lobby for its position, often emphasizing its vulnerability and strategic importance.
Narratives and Blind Spots: Cohen notes that both countries nurture "mutual blind spots," leading them to avoid questioning their respective narratives, according to a review of Cohen's work in The Hindu. This makes compromise on even minor issues difficult, as it might be perceived as a sign of weakness.
"Paired Minority Conflict": Cohen applies the concept of "paired minority conflict" to the India-Pakistan dynamic. This means both sides perceive themselves as a threatened and vulnerable minority, leading to actions that might appear extreme, according to a video featuring Stephen Cohen from the Middle East Institute.
Indian Defense Minister Rajnath Singh claims"sub ke boss to hum hain" (We're everyone's boss in the world)
https://youtu.be/sh9GVDKc_hw
Defence Minister Rajnath Singh said, "There are some people who are not happy with the speed at which India is developing. They are not liking it. 'Sabke boss toh hum hain', how is India growing at such a fast pace? And many are trying that the things made in India, by the hands of Indians become more expensive than the things made in those countries, so that when the things become expensive, the world will not buy them. This effort is being made. But India is progressing so fast, I say with full confidence that now no power in the world can stop India from becoming a big power of the world..." "As far as the defence sector is concerned, you will be happy to know that now we are exporting defence items worth more than 24 thousand crores. This is the strength of India, this is the new defence sector of the new India and the export is increasing continuously..."
The 21st century will be “dominated by Hindutva” or “Hindu-ness”. Says Mohan Bhagwat, the RSS chief, or sarsanghachalak. “Our society needs to be vigilant and united,” he said. “While we celebrate our diversity, I will speak my language with pride, and my faith is dear to me. These are my unique identities — and I want to protect them.”
A hundred years after it was founded, the RSS is getting closer to its goal of a Hindu-first state
https://www.ft.com/content/da3bcde0-635f-4c33-b206-e6a496acae5d
On a blistering summer evening in Nagpur, a city in Central India, a sea of almost a thousand men clad in brown trousers, crisp white shirts and black caps stood stiffly, as a saffron-coloured flag quivered up a mast. A whistle shrieked and the graduating karyakartas, or “workers” — most of them moustachioed, some of them wiry, others with bulging bellies over their belt buckles — held their right arms and open palms stiff across their chests in salute, followed by a quick head bow. To the background of beating drums, they chanted in Hindi: “The collective consciousness of the people is awakening; change is surely coming.” At their sides they carried lathis, sturdy bamboo sticks.
The graduation ceremony marked the end of a month-long training programme, designed to be character-building, “man-making” and to mould the men into a brotherhood of Hindu nationalists, part of a long campaign waged by the Rashtriya Swayamsevak Sangh, or National Volunteers’ Organisation, which marks its centenary in September. This all-male group has become arguably the largest far-right movement in the world, with, it is claimed, some six million members. Crucially, it forms the heart, soul and muscle of Prime Minister Narendra Modi’s ruling Bharatiya Janata party, which is steeped in RSS ideology and has been accused of turning India into a Hindu nation at the expense of its Muslim minority. That ideology imagines India to be a Hindu state. It is deeply suspicious of, and often hostile to, the country’s minority faiths. “From its inception, the goal before the Sangh was to attain the pinnacle of glory of the Hindu Rashtra [nation] . . . through organising the entire society,” reads the RSS mission statement. The 21st century will be “dominated by Hindutva” or “Hindu-ness”. Mohan Bhagwat, the RSS chief, or sarsanghachalak, gave the graduation speech. “Our society needs to be vigilant and united,” he said. “While we celebrate our diversity, I will speak my language with pride, and my faith is dear to me. These are my unique identities — and I want to protect them.”
Bhagwat is not alone in harbouring such feelings in India today. The perceived threats to Hindu identity he alluded to included those posed by neighbouring Pakistan to the west and by Bangladesh to the east as well as from an enemy within — India’s religious minorities. Modi has expressed similar fears. The prime minister has been a member of the Sangh since his youth, and went through the same set of rites as these men. He was a pracharak, or full-time RSS worker, until he entered politics in the 1980s.
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