Trump's 25% tariff on India exposes cracks in Modi friendship and threatens economic growth
'India has been taking advantage of the US for far too long. Time for a level playing field. New deal with Pakistan coming soon. Much fairer," the US President posted on Truth Social earlier this week.
'25% tariff now live on Indian medical imports. American jobs matter more than cheap Indian drugs. Too much going to Russia, not fair to us!'
The sudden tariff hike, targeting Indian pharmaceuticals, medical devices, and textiles, comes amid simmering friction between the two countries and has sent shockwaves through both the Indian diplomatic and business communities.
India's Ministry of Commerce & Industry responded cautiously, saying it had 'taken note' of the US President's remarks and was 'studying their implications.'
The ministry reaffirmed India's ongoing commitment to concluding a 'fair, balanced, and mutually beneficial' bilateral trade agreement with Washington.
Indian business leaders, however, have not held back.
Harsh Vardhan Agarwal, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), called the tariff imposition 'disappointing,' warning it would dent export performance and undermine the hard-won trust between the two economies.
'This move is unfortunate and will undoubtedly impact our exporters,' Mr Agarwal said.
'We still believe the two countries can arrive at a comprehensive trade deal that benefits both sides.'
Adding to New Delhi's discomfort is Trump's recent and controversial claim that he helped mediate a ceasefire during the latest flare-up on the borders, a statement India has neither confirmed nor directly rebutted.
The ambiguity has invited criticism in India.
What has made the situation more politically volatile is Prime Minister Modi's long-standing public embrace of Trump.
Their joint appearances at 'Howdy Modi' in Houston and 'Namaste Trump' in Ahmedabad were projected as symbols of a thriving personal and strategic alliance. That narrative is now under scrutiny.
With Trump turning publicly confrontational, India's opposition parties have pounced.
They are demanding that Modi push back against Trump's remarks on the ceasefire and take a firmer line against the tariffs, accusing the government of compromising national dignity for diplomatic optics.
Meanwhile, the Indian medical and pharmaceutical sectors, among the worst affected, have voiced strong objections.
Dilip Kumar, Chairman of the Medical Tourism division at the Chamber of Commerce, told Indian media that Trump was attempting to 'kill the market of the Indian economy.'
'But that's not going to happen,' Mr Kumar said. 'The American market is dependent on Indian and Chinese suppliers. The real losers will be the US patients, not Indian exporters.'
He added that India would now look to strengthen its trade relationships with Europe and other regions.
'We are resilient. We survive and bounce back - even in the toughest times.'
For New Delhi, the challenge now is how to safeguard its economic interests without triggering an open confrontation, especially with a leader who rarely pulls his punches, even with friends.
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