These efforts come amid Washington’s decision to raise import tariffs on Indian goods to 50%—the highest after Brazil—while Trump referred to the South Asian economy as a “dead economy.” The U.S.-India relationship, built over more than 25 years, has come under strain as Washington criticized India’s trade surplus and imposed sanctions over its purchases of Russian crude oil.
On August 10, Modi expressed his displeasure at Trump’s remarks and affirmed India’s goal to become one of the world’s top three largest economies. The German newspaper noted that the Indian prime minister felt insulted.
Frankfurter Allgemeine Zeitung observed that Trump typically leverages dependence on the U.S. market to exert pressure. However, Modi has resisted this approach since Trump’s first term, maintaining cooperation with Washington without compromising India’s economic interests. Notably, Trump has recently intensified efforts to persuade New Delhi to make concessions. In February, the two countries initiated negotiations for a major trade agreement following Modi’s visit to Washington, aiming to raise bilateral trade to $500 billion by 2030. The agreement was expected to be signed in the fall, but the sixth round of negotiations in India, scheduled for August 25, was canceled.
On August 6, the Trump administration increased import tariffs on Indian goods from 25% to 50%, effective August 27, citing India’s continued purchases of Russian oil and petroleum products. Trump also criticized India for relying on Russian weapons and being one of Moscow’s largest energy clients, along with China.
India’s Ministry of External Affairs strongly responded, calling the U.S. and EU allegations regarding Russian oil imports unfounded.