India now incurs greater U.S. tariffs than China. What does it say about Trump’s international coverage?


US President Donald Trump and Indian Prime Minister Narendra Modi arrive to carry a joint press convention within the East Room of the White Home in Washington, DC, on February 13, 2025.

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De-escalation in tensions between China and the U.S. after their leaders met in South Korea final Thursday stands in stark distinction to the nippiness in Washington-New Delhi relations, with India now topic to greater U.S. tariffs than Beijing.

Consultants stated that the strategic relationship between India and U.S. constructed over 20 years has considerably eroded.

Atman Trivedi a accomplice and lead of the South Asia Follow at DGA-Albright Stonebridge Group stated belief between the 2 international locations “may take years rebuild.”

Steep tariffs, $100,000 price for H1B visas, and U.S. President Donald Trump’s repeated claims of getting brokered a ceasefire between India and Pakistan are amongst points which have led to deterioration of ties between New Delhi and Washington in latest months, in line with specialists.

“President Trump evidently doesn’t worth India as a accomplice in balancing China as a lot because the earlier presidents,” stated Raymond Vickery Jr., senior affiliate and chair on India and rising Asia Economics at Heart for Strategic and Worldwide Research.

The U.S. international coverage from President Invoice Clinton till not too long ago, together with Trump’s first time period because the president, had persistently valued “democratic India over autocratic China,” he stated, including that the method towards India has now shifted from one among strategic altruism to “transactionalism.”

In the meantime, ties between the U.S. and China look like on the mend.

In a put up on Fact Social on Saturday, Trump stated “My G2 assembly President Xi of China was an ideal one for each of our international locations” including that it could result in “eternal peace and success.”  

Shortly after, Pete Hegseth, U.S. secretary of protection, stated on X that China and the U.S. had agreed to arrange “miliary-to-military channels to deconflict and deescalate” any issues.

Trump and Chinese language President Xi Jinping reached a commerce truce in a high-stakes assembly in South Korea on Thursday which noticed Washington reducing tariffs on Beijing associated to fentanyl to 10% from 20%, lowering the general price on Chinese language items to round 47%.

China now pays a decrease tariff than India.

In August the U.S. imposed 50% tariffs on India together with secondary duties of 25% for its buy of Russian oil. India has referred to as the transfer “unfair, unjustified and unreasonable,” whereas has referred to as U.S. commerce ties with India “a completely one-sided catastrophe!”

U.S. President Donald Trump meets with Indian Prime Minister Narendra Modi within the Oval Workplace of the White Home in Washington, DC, on Feb. 13, 2025.

Jim Watson | Afp | Getty Pictures

“On the leader-level, the chemistry is lacking for now, and the impression of this disconnect on the U.S.-India relationship most likely can’t be overstated,” Trivedi added.

Throughout his Asia journey final week, whereas addressing company leaders at Asia-Pacific Financial Cooperation summit in South Korea, Trump stated he threatened India and Pakistan with 250% tariffs except they stopped hostilities.

An assault by militants within the Indian-controlled area of Kashmir in April killed 26 civilians. India accused Pakistan and launched a army strike, leading to a four-day battle that threatened to blow up right into a broader battle fueled by many years of tensions between the 2 international locations.

“The strategic relationship between India and the U.S. has been below pressure this 12 months not simply due to tariffs, but additionally due to Washington’s posture within the battle with Pakistan and the obvious warming of [U.S.] ties with Pakistan’s army,” stated Alexandra Hermann, head of Southeast Asia Analysis at Oxford Economics.

Trump’s claims are being picked up by Modi’s political opponents together with the chief of opposition Rahul Gandhi. Modi is “scared” of U.S. President Donald Trump, Gandhi reportedly stated on Sunday in a political rally in Bihar.

Hermann added that now the problem for India can be to seek out its place between two financial superpowers.

“Whereas New Delhi stands to learn from better entry to U.S. demand, its dependence on China is unlikely to decrease within the close to time period given the still-extreme uncertainty round commerce coverage and the prices of relocating provide chains,” she stated.

Conserving apart strained commerce ties, U.S. and India on Friday signed a 10-year “Framework for the US-India Main Defence Partnership.”

Hegseth stated on X that the 2 international locations had been enhancing “coordination, data sharing, and tech cooperation,” whereas his Indian counter Rajnath Singh stated the partnership between U.S. and India was “vital for making certain a free, open and rules-based Indo-Pacific area.”

Consultants warn if U.S. sticks with its transactional method towards India, it would drive the 2 additional aside, compromising strategic pursuits of each.

“The Trump coverage will push India additional towards Russia, the International South, and even China. This won’t be within the pursuits of both India or the US,” stated Vickery Jr. from CSIS.