lørdag 16. august 2025

India’s hand in Trump tariff row stronger than it looks

On August 6, US President Donald Trump signed an executive order doubling tariffs on most Indian exports to the United States, raising the rate from 25 to 50%. The decision, set to take effect later this month, was justified on grounds of trade imbalances and New Delhi’s continued discounted purchases of sanctioned Russian oil.

The escalation marks the sharpest deterioration in US-India trade relations in decades. Prime Minister Narendra Modi has denounced the measures as “unfair and unjustified,” noting that other major buyers of Russian crude have not been penalized. “We will protect our farmers and our domestic interests, even if we must pay a heavy price,” he told a rally in Gujarat in response to the tariffs.

Within days, India announced a pause on planned US defense acquisitions — a not-so-subtle signal that its strategic options extend far beyond the Pentagon’s procurement lists. Senior officials have begun mapping out a menu of counter-moves, from limited retaliatory tariffs to deeper integration with BRICS partners and other non-Western economies.