Tensions between Washington and New Delhi are deepening as trade disputes take center stage. US President Donald Trump has warned India of possible second and third rounds of tariffs while Prime Minister Narendra Modi’s government scrambles to find alternatives through tariff cuts, domestic market expansion and new trade alliances.
In a recent radio interview, Trump accused India of enjoying massive export benefits to the US while contributing little in return. Earlier, during a White House press briefing, he hinted at additional tariff measures against India.
Facing pressure, New Delhi has reduced taxes on hundreds of consumer goods—from small cars to air conditioners—and simplified its GST system from four tiers to two, aiming to boost local demand and soften the tariff blow.
Analysts warn that retaliatory tariffs against the US would be “self-destructive” for India given its high dependency on American markets. Instead experts suggest building stronger ties with China, Japan, Russia, and Europe to diversify exports and reduce reliance on Washington.
Adding fuel to the controversy, former US National Security Adviser Jake Sullivan claimed that Trump’s tilt toward Pakistan was influenced by personal business interests.
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According to Sullivan, Trump’s family-controlled crypto firm, World Liberty Financial, signed a deal with the Pakistan Crypto Council earlier this year, paving the way for investments in Islamabad and access to energy resources. He accused Trump of sacrificing diplomacy for private gain.
