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President Donald Trump has imposed 50% tariffs on India's exports to the United States. This is far higher than most countries facing US tariffs. Explaining the punitive India tariffs, US Treasury Secretary Scott Bessent said: "India came to the table early. They’ve been slow rolling things. So I think that the president, the whole trade team has been frustrated with them. And also, you know, India, India has been a large buyer of sanctioned Russian oil that they then resell as refined products. So, you know, they have not been a great global actor".
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Indian Cartoonist Satish Acharya on Trump-Modi Dialog. Source: Sati... |
Since taking office in January 2025, President Trump has been signaling his intent to apply tariffs on India's exports repeatedly. Trump has been singling out India as a country with the highest tariffs it applies on exports from the US.
Indian cartoonist Satish Acharya published a caricature of Modi-Trump conversation portraying Modi's ignorance or pretense of ignorance of what Trump said to him. The cartoon shows Modi thinking Trump was heaping "taarif" (praise) on him when in fact Trump was threatening to impose high tariffs on India. As an aside, tariff originates from the Arabic word "taʿrīf" (تعريف), which means "notification," "definition," or "announcement". This term probably entered the European lexicon through interactions between Arabic-speaking merchants and European traders in the medieval Mediterranean region.
Cartoons aside, it's clear that Mr. Modi failed to take the Trump tariff threat seriously, and Indian negotiators dragged their feet hoping that Mr. Trump would flinch. Meanwhile, India's supporters in Washington continued to argue for a US policy of "strategic altruism" toward India that has characterized US-India ties since the beginning of the 21st century.
In a 2019 piece titled "The India Dividend: New Delhi Remains Washington’s Best Hope in Asia" published in Foreign Affairs journal, authors Robert Blackwill and Ashley Tellis argued that the Trump Administration should continue this US policy of "strategic altruism" with India that began with US-India nuclear agreement. They asked President Trump to ignore the fact that the US companies and economy have only marginally benefited, if at all, from this policy. They saw India as a "superpower in waiting" and urged Washington to focus on the goal of having India as an ally to check China's rise. They see Chinese support for India's arch-rival Pakistan and China’s growing weight in South Asia and beyond as a threat to India.
At the same time, Mr. Modi has suffered from delusions of personal rapport with Mr. Trump, describing him as "my friend Dolund Trump" at mass rallies in India. Modi and his supporters in Washington should have heeded the advice of Ambassador Kishore Mahbubani. "One hard truth that Indians have to contend with is that America has also had difficulty treating India with respect", wrote the Singaporean diplomat Kishore Mahbubani in his latest book "Has China Won?". "If America wants to develop a close long-term relationship with India over the long run, it needs to confront the deep roots of its relative lack of respect for India", adds Ambassador Mahbubani. It's not just Mahbubani who suspects the United States leadership does not respect India. Others, including former President Bill Clinton, current US President Donald Trump, former Secretary of State Hillary Clinton and CNN GPS host Fareed Zakaria have expressed similar sentiments.
President Trump has rejected all pleas from pro-India analysts for special treatment of New Delhi. Prior to his meeting with Prime Minister Narendra Modi at the White House in February this year, the US president described India as the "worst abuser of tariffs" and announced "reciprocal tariffs" on Indian imports to the United States. At the same time, Mr. Trump cracked down on both legal and illegal immigration from India. His administration is deporting thousands of illegal Indian immigrants in handcuffs and shackles on US military aircraft. Meanwhile, stringent new regulations on temporary work visas could significantly delay visa processing times and reduce the number of Indian workers employed in the United States on H1B visas.
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Christopher Clary
@clary_co
The core reality of India’s foreign policy dilemma is this: Russia is too weak and too backward to provide India what it needs to ascend, the EU is militarily incapable and riven by its own divisions, China is too strong, and the US is erratic.
https://x.com/clary_co/status/1953062441215984120
Christopher Clary
@clary_co
Why is the US erratic? In part because it can be. It is quite powerful and far away from the most threatening other great powers (China and Russia). India is also not lucky in this regard sharing a long disputed border with the most powerful of the threatening great powers.
https://x.com/clary_co/status/1953088204518600958
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Christopher Clary
@clary_co
“Amitabh Kant, until recently Mr. Modi’s envoy for dealing with the Group of 20 economies, said, ‘[E]ven if the trade issues are sorted out, the trust would have been lost forever.’” https://www.nytimes.com/2025/08/08/world/asia/modi-india-trump-chin...
https://x.com/clary_co/status/1954511540368912889
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AI Overview
According to recent news reports, India's Prime Minister Narendra Modi has reportedly been experiencing a period of "soul-searching" following what has been described as the collapse of his efforts to improve ties with the United States and China.
Background
The New York Times reported that India's efforts to transform its relationships with the US and China have highlighted the limitations of India's influence on the world stage.
Prime Minister Modi acknowledged that he might face political consequences due to the ongoing trade dispute with the US.
Despite these developments, there are indications of renewed attempts to improve relations with China, with Modi scheduled to visit later this month for the first time in seven years. However, tensions remain due to border skirmishes and China's support for Pakistan's military escalation with India.
Impact
These events have led to a moment of introspection in India, revealing the constraints on its global power despite its large size and growing economy.
Recent developments
On Sunday, August 10, 2025, Prime Minister Modi indirectly criticized US President Donald Trump's "dead economy" comment during a public event in Bengaluru, emphasizing India's progress toward becoming one of the world's top three economies. He attributed this growth to a spirit of reform, performance, and transformation driven by clear intentions and honest efforts.
In summary, recent reports suggest that Prime Minister Modi and India are reassessing their foreign policy strategy and global positioning following setbacks in their relationships with the US and China.
Everyone Knows Indian Economy is Dead Except Modi and Sitharaman, Says Rahul Gandhi - The Wire
https://thewire.in/politics/everyone-knows-indian-economy-is-dead-e...
New Delhi: Hours after US President Donald Trump equated India with Russia and said that they can take their “dead economies down together”, Leader of opposition in the Lok Sabha Rahul Gandhi echoed his statement and said that the whole world knows this fact, except Prime Minister Narendra Modi and Union finance minister Nirmala Sitharaman.
“He [Trump] is right. Everybody knows that the Indian economy is a dead economy, except the prime minister and the finance minister. I am glad that President Trump has stated a fact. The whole world knows – India’s economy is a dead economy and the BJP has destroyed the economy. Why did they destroy it? To help Adani,” said Gandhi speaking to reporters outside the parliament on Thursday.
Gandhi’s statement came hours after Trump on Wednesday announced that a 25% tariff, plus a penalty, will be imposed on India starting August 1. The Union government has responded to it saying that it “will take all steps necessary to secure our national interest”. Later on Wednesday, Trump mounted a sharp attack and said, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” he said.
Gandhi said that the Modi government had “destroyed India’s economic, defence and foreign policy. They are running this country into the ground.”
Earlier on Tuesday, Gandhi in his speech during the discussion on the Pahalgam terror attack and Operation Sindoor, demanded that the prime minister show the courage to tell parliament that US President Donald Trump is a liar in response to his continued claims of having mediated a ceasefire between India and Pakistan.
Four days of military conflict between the two countries following Operation Sindoor was brought to an end, according to Trump, after he used trade as leverage and brought the two countries back from the brink of a nuclear war. Modi in his reply said no world leader had asked Operation Sindoor to be stopped but did not name Trump.
“The foreign minister, while giving a speech, says that our foreign policy is very good. On one hand, America is criticising India, and on the other hand, China is after us. When you send your delegations around the world, no country condemns Pakistan. How are they running this country – they don’t even know how to run a country, there is total confusion,” said Gandhi on Thursday.
“Trump has said 30-32 times that he brokered a ceasefire. Trump has also said that five Indian jets have been shot down, and now he is talking about imposing a 25% tariff. Have you asked yourself why Narendra Modi is unable to respond? What is the actual reason? Who is in control – understand the situation.”
Later on Thursday Gandhi also said in a statement on X that the Indian economy is dead. “The Indian economy is dead. Modi killed it,” he wrote.
“Adani-Modi partnership, Demonetisation and a flawed GST, Failed “Assemble in India”, MSMEs wiped out, Farmers crushed – Modi has destroyed the future of India’s youth because there are no jobs,” he wrote.
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President Donald Trump has imposed 50% tariffs on India's exports to the United States. This is far higher than most countries facing US tariffs. Explaining the punitive India tariffs, US Treasury Secretary Scott Bessent said: "India came to the table early. They’ve been slow rolling things. So I think that the president, the whole trade team has been frustrated with them. And also, you know, India, India has been a large buyer of sanctioned Russian oil that they then resell as refined…
ContinuePosted by Riaz Haq on August 9, 2025 at 12:30pm — 2 Comments
The United Nations World Food Program has ranked Pakistan fourth among donor countries and sixth overall in 2024. Among the largest 15 donors worldwide, the United States topped the list with $4.45 billion, followed by Germany ($995 million), the United Kingdom ($610 million), European Union ($593 million), private donors ($335 million), Pakistan ($228 million), South Korea ($203 million), France ($196 million), Sweden ($183 million), Canada ($166 million), Norway ($158 million),…
ContinuePosted by Riaz Haq on August 2, 2025 at 10:00am — 2 Comments
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