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Trump’s 50% tariff on India has shifted the balance of power in the world and may significantly impact India-US relations. The US is one of India’s largest export markets, and industries like textiles, steel, chemicals, pharmaceuticals, agriculture, and seafood could suffer greatly from such high tariffs. India can expand its export markets and establish new commercial ties in South-East Asia, Africa, Europe, the Middle East, and Latin America. Read in-depth analysis by veteran journalist Manoj Tibrewal Aakash.
India-US trade war escalates with US imposing 50% tariffs
New Delhi: The president of the United States Donald Trump declared 50% tariff on India. Following this ruling the balance of power in the world and the direction of tension in India-US relations may significantly shift.
Senior journalist Manoj Tibrewal Aakash said on his show 'The MTA Speaks', the largest blow has been dealt to India and Brazil where 50 percent tariffs have been applied. Donald Trump has imposed high tariffs on India and many other BRICS nations. For the other nations varying percentages between 10 and 50 percent have been used. Given that India is still purchasing cheap crude from Russia and is looking for alternatives to the dollar within the BRICS analysts say the move is obviously political rather than merely commercial.
The US will not make it easy if the BRICS trade in their own currency rather than the dollar according to Trumps unambiguous message. Trumps tariffs have presented India with opportunities as well as difficulties. The problem is that the US is one of India's largest export markets and industries like textiles engineering steel chemicals pharmaceuticals agriculture and seafood could all suffer greatly from such high tariffs. Possibilities because of this circumstance India can expand its export markets and establish new commercial ties in South-East Asia Africa Europe the Middle East and Latin America.
In a strong response Prime Minister Narendra Modi declared that he is ready to pay a heavy price to safeguard the interests of Indian farmers, dairy producers and fishermen. His statement makes it abundantly evident that India will not yield to this pressure. The government has devised a three-pronged plan to address the issue.
The impacted exporters should receive immediate financial and policy support they should also quickly expand into alternative markets and finally increasing domestic consumption will lessen reliance on foreign markets. Free trade agreement talks are also being stepped up with the European Union Canada the United Kingdom and Australia. Between August 31 and September 1 2025 Chinas Tianjin is set to host the Shanghai Cooperation Organization (SCO) summit. This decision coincides with that date. Chinese President Xi Jinping and Prime Minister Narendra Modi will both be present at the summit. Modi will be visiting China for the first time since the June 2020 clash in Galwan.
The meeting may mark the start of a thaw in India-China relations according to speculation in the international media and the two nations strategic proximity is expected to grow following the Trump tariffs. The two biggest consumer markets in the world are China and India. The pressure on the US economy may intensify if these two nations expand their economic cooperation. This triangular cooperation can also be strengthened by Russia which is close to both China and India. The US may find this situation difficult particularly at a time when it is attempting to negotiate significant trade agreements with China on its own.
Pharmaceuticals steel and aluminum products textiles engineering exports agriculture and marine products will all be directly impacted by the US tariffs. Companies in Tamil Nadu Andhra Pradesh Gujarat Punjab and other states have already issued warnings that if the tariffs persist for an extended period of time millions of jobs may be in jeopardy. It has been referred to as the death knell for competition by Ludhiana textile manufacturers. To ensure that exports to the US continue the Seafood Exporters Association has called for at least 30% working capital support. Supply chains are already unstable as a result of the USs protectionist policies in the global economy.
India should now capitalize on this volatility and position itself as a dependable center for exports and manufacturing. Rapidly putting policies like Make in India and Atmanirbhar Bharat into action will help India become less dependent on foreign countries and increase the competitiveness of its own industries on a global scale. The nations of the BRICS have begun to demonstrate political unity. During their phone call Prime Minister Modi and Brazilian President Luiz Inacio Lula da Silva talked about their joint strategy. Brazil has already complained to the World Trade Organization about the United States. India will probably bring up the matter forcefully in international fora as well.
India's next move might be to reevaluate its defense agreements. There is no official confirmation but some reports suggest that India may delay some of its plans for US defense procurements in response to the tariffs. The United States will receive a clear message from this that economic conflict with India can affect defense and strategic cooperation.
Additionally Trumps action is viewed as a component of a larger US strategy. In addition to trying to curb Chinas and BRICS expanding power they also want to change the international trading system to suit US interests. Trump has increased the pressure on the BRICS nations amid rumors of a potential large trade agreement with China indicating that those that stray from US policies will face financial consequences. In this respect India has two options. Either he gives in to pressure from the US and stops buying oil from Russia and the BRICS dollar-less strategy or he maintains his independent foreign policy position and fortifies new international partnerships.
So far there are signs that India is going in a different direction. The economic and diplomatic collaboration of China Russia India and other developing nations is expected to establish a parallel power center for the United States in the upcoming months according to international analysts. This can have a significant impact on the geopolitical balance as well as international trade. Indias GDP is predicted to suffer from the US tariffs but this loss can be somewhat offset by strong domestic demand efficient services and new business opportunities. This crisis can be transformed into a significant opportunity if India responds quickly to show policy flexibility supports homegrown industries and expands into new markets.
