Trump’s New Tariff to Impact Indian Economy, Could Reshape Bilateral Ties

Employees iron pockets for shirts at the apparel manufacturing unit at Bhiwandi in the Thane district of India's Maharashtra state on July 30, 2025. (Photo by Indranil MUKHERJEE / AFP)

U.S. President Donald Trump’s decision to slap harsh tariffs on Indian exports and a “penalty” on purchases of Russian weapons and energy will cost thousands of jobs and could fundamentally change the nature of bilateral ties, experts said Wednesday.

Months of negotiations between the two countries over an interim trade deal had stalled in recent weeks over Trump’s sweeping demands and New Delhi’s reluctance to fully open its agricultural and dairy sectors to U.S. imports.

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