In a sharp escalation of trade tensions, US President Donald Trump has imposed an additional 25 percent tariff on Indian imports, prompting strong criticism from foreign policy experts and the Indian government alike. Michael Kugelman, Director of the South Asia Institute at the Wilson Center, described the move as the “worst crisis” in US-India relations in the past two decades.
Kugelman, a Washington DC-based South Asia analyst, warned that the tariff decision could have a “damaging impact” on the strategic partnership between the two countries. He noted that while the relationship has matured and can endure shocks, this new development represents a significant setback.
“Unfortunately, given the trajectory of US-India ties in recent days, this announcement isn’t all that surprising,” Kugelman said. “President Trump appears determined to act on his tariff threats, even at the cost of long-standing bilateral ties.”
He emphasized that the multifaceted nature of the relationship — encompassing defense, technology, education, and people-to-people links — provides some resilience. “There is potential for this relationship to be salvaged, not just because of shared interests, but also due to its layered and parallel areas of cooperation,” he said.
When asked why India was being singled out while China was spared similar punitive action despite larger trade concerns, Kugelman pointed to perceived personal affronts from India’s leadership. “India has publicly challenged President Trump’s claims and taken a firm stance on issues like the ceasefire in Ukraine, which may have provoked a stronger reaction. It’s hypocritical and a clear double standard,” he noted.
The reaction follows Trump’s Executive Order on Wednesday that imposes a 25 percent surcharge on Indian goods, citing national security and foreign policy concerns. The White House claimed that India’s continued imports of Russian oil — directly or indirectly — represent an “unusual and extraordinary threat” to the United States.
The total tariff on Indian goods entering the US will now stand at 50 percent. The initial duty is effective immediately, while the new 25 percent levy will kick in after 21 days. Goods already in transit or those that meet specific exemptions will not be affected. The Executive Order also allows room for adjustments based on retaliatory actions or policy changes by India or Russia.
India has responded sharply, labelling the US action as “unfair, unjustified and unreasonable.” In a statement, the Ministry of External Affairs (MEA) emphasized that India’s oil imports from Russia are based on economic considerations and essential for securing energy for its 1.4 billion citizens.
“It is extremely unfortunate that the US has chosen to target India for actions that many other nations are also undertaking in their own national interest,” the MEA said, adding that New Delhi will take “all actions necessary” to defend its national interests.
The sudden tariff hike comes amid growing global uncertainty and could mark a turning point in the broader US-India strategic alignment, experts warn.
