Tensions are rising between the United States and India as President Trump intensifies his rhetoric against BRICS nations. His threats of imposing 100% tariffs on these countries if they pursue a currency alternative to the dollar have raised concerns about the future of US-India relations, as analysts warn in the report.
Trump's Tariff Decision
The situation has become increasingly complicated following Trump's decision in August 2025 to impose a staggering 50% tariff on Indian goods, marking the highest rate applied to any country.
Strained Trade Relations
This move has already strained trade relations, leading to a breakdown in negotiations between Washington and New Delhi.
Modi's Refusal to Engage
Prime Minister Modi's refusal to engage in a phone call with Trump to finalize a trade deal has further exacerbated the tensions.
Current Impasse
Both nations are now at an impasse.
India's trade dynamics have shifted significantly, with a remarkable surge in exports to China, contrasting the strained relations with the US. For more details, see India's Exports.
