US President Donald Trump has once again thrust global trade relations into uncertainty, this time by threatening to impose tariffs of up to 25% on imports from India. The remarks came during an informal exchange with reporters aboard Air Force One on July 29, as the clock ticks down toward a self-imposed August 1 deadline for a US-India trade agreement.

“India has been a good friend,” Trump said, “but India has charged basically more tariffs than almost any other country over the years.” His comments suggest a deepening frustration with what he perceives as an unbalanced trade relationship – a stance consistent with his long-held “America First” economic doctrine.

The threat to levy punitive tariffs is the latest salvo in an escalating standoff between Washington and New Delhi. Although the two countries have enjoyed a broadly cooperative relationship, especially on security and strategic affairs, economic frictions have grown more pronounced in recent years. Trump’s renewed focus on trade imbalances now puts that relationship under strain just months before the 2024 US presidential election.

Earlier this year, in March, the US slapped 26% tariffs on Indian goods including aluminum, steel, and related derivative products as part of Trump’s so-called “Liberation Day” tariffs – a symbolic move aimed at reversing what he called “decades of unfair trade treatment” toward the United States. Though those measures were suspended temporarily, the specter of a new wave of tariffs now looms large.

If Trump........

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