Trump's proposed 50% tariffs on India may lead to adverse consequences, according to Bolton.
The United States has announced a new round of tariffs on imports from India, effective from August 27, 2025. These tariffs, ranging from 10% to 41%, are a response to India's continued purchase of Russian oil, a move that the U.S. views as contributing to a national emergency related to Russia's actions against Ukraine.
The tariffs are not only a continuation of previous reciprocal tariffs imposed due to trade imbalances, but they also broadly apply to Indian goods, except for certain products listed in an executive order annex.
John Bolton, the former U.S. National Security Advisor, has criticised these tariffs, highlighting potential negative consequences such as further straining the already complex U.S.-India trade and diplomatic relations. The tariffs could undermine economic ties and cooperation between the two countries by escalating trade tensions.
India's response to the tariffs includes diplomatic protests and warnings. Indian officials view the tariffs as unfair and damaging to bilateral relations, especially given India's strategic balancing act involving energy security and geopolitical concerns. There are reports of India seeking alternative trade partnerships and exploring measures to mitigate the impact of these tariffs.
The new tariffs come after President Trump's earlier "Liberation Day" tariffs of April 2, which were paused for 90 days to allow for trade negotiations. The latest tariff moves were announced on August 1.
Indian Prime Minister Narendra Modi has reiterated his commitment to protecting the interests of farmers, fishermen, and dairy producers. Modi stated that he would not compromise on these issues, even if it means paying a heavy price. Modi emphasized that agricultural and rural livelihoods remain India's top priority in any trade negotiation.
In an opinion piece for The Hill, John Bolton cautions that the situation could worsen if China secures a better trade deal, inflaming President Trump's "resentment for India." Bolton warns that these tariffs could drive India closer to China and Russia, undermining years of diplomatic progress.
These developments indicate a significant challenge in U.S.-India relations, balancing economic sanctions policies with long-term diplomatic partnerships. The new tariffs may increase economic friction, potential retaliation, and cooling of U.S.-India relations, which might affect broader strategic cooperation. India, in response, is seeking to diversify trade and energy sources to reduce vulnerability.
- The new tariffs, imposed as a response to India's purchase of Russian oil, are a contentious issue in the realm of policy-and-legislation, contributing to the escalating politics surrounding trade relationships between the U.S. and India.
- As the tariffs could potentially undermine economic ties and cooperation between the nations, they are a matter of concern in the general-news, with some analysts predicting an escalation of trade tensions between the U.S. and India.
