US President Donald Trump has dealt a significant blow to India’s economy by declaring it “dead” and imposing tariffs of up to 50 percent, sending shockwaves throughout the business world. The move comes after weeks of escalating tensions between the two countries.
Trump’s threat to add an extra 25% tariff on Indian oil imports from Russia marks a sudden turn in his administration’s stance on India as a counterweight to China. Just a few months ago, Trump had signaled support for India’s economic rise and even described it as a “mega partnership for prosperity.”
However, the new tariffs paint India as a political enemy, putting it at odds with Brazil, which faced similar punitive measures from the US last year. The crisis between India and the US has significant implications for trade and investment between the two nations.
India’s economy is expected to benefit significantly from its strategic partnerships with countries like the US, particularly in defense and manufacturing sectors. However, the latest tariffs are likely to have a devastating impact on India’s industries, including pharmaceuticals and semiconductors, which were previously seen as key areas for cooperation between the two nations.
Industry experts warn that the new tariffs could cripple India’s growth prospects, making it increasingly dependent on China for manufacturing and services. The move also highlights the uncertainty and risks associated with investing in emerging markets like India.
Despite the daunting challenges ahead, many Indian companies and investors remain optimistic about their ties with the US, citing areas of cooperation such as defense, technology, and investment. However, the new tariffs have sparked fears that the relationship may be irreparably damaged under Trump’s leadership.
Source: https://www.nytimes.com/2025/08/06/business/india-china-trump-tariffs.html