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US tariffs on India: The relationship between India and the United States is facing one of its most severe tests in decades, according to Congress MP Shashi Tharoor. In a strongly worded piece on The Indian Express, Tharoor warned that the "grave has already been dug" for the much-celebrated strategic partnership between the two nations, even as he emphasised that it is still possible to salvage the alliance.
Why are India-US ties under strain?
Tensions between New Delhi and Washington DC have been escalating due to a series of punitive tariffs imposed by the United States on Indian exports. These measures, Tharoor argued, have severely disrupted trade and risk pushing India towards closer ties with China and Russia.
Drawing a historical parallel, Tharoor cautioned against a future scenario reminiscent of the infamous American debate over "Who lost China?" after Mao Zedong's Communist victory in 1949. He suggested that Washington could soon face its own reckoning: “A few years from now, if New Delhi finds itself in the embrace of China and Russia and alienated from America, might there be a new blame game in Washington DC, with finger-pointing American pundits angrily asking the question, ‘Who lost India?’”
What are Trump’s tariffs on India?
As of 27 August, the US President Donald Trump doubled tariffs on Indian goods, impacting over $48 billion worth of exports out of a total $87 billion. Sectors worst hit include textiles, gems and jewellery, leather goods, seafood — especially shrimp — and auto components. Pharmaceuticals and electronics have so far been spared.
This decision, Shashi Tharoor noted, came despite India’s long-standing status as a key defence and strategic partner with US. The rationale provided by Washington DC links India’s continued purchase of Russian oil and defence equipment to indirectly funding Russia’s war in Ukraine — an accusation New Delhi firmly denies.
“Strategic autonomy is being punished, rather than respected,” Tharoor wrote, criticising the move as politically motivated and economically destructive.
How are Trump's 50% tariffs impacting India?
The economic consequences have been immediate and severe. Indian exporters are rapidly losing competitiveness in the US market, with American buyers shifting to suppliers in Vietnam, Thailand, Turkey and Ecuador. Thousands of jobs are now at risk.
For instance, Tharoor mentioned, Surat has already witnessed the layoff of over 150,000 jewellery workers, while garment hubs like Tiruppur and seafood exporters in Visakhapatnam face similar job losses. Rising costs are also hitting American consumers, creating a lose-lose scenario for both nations.
Shashi Tharoor warned that prolonged tensions between India and US could permanently damage bilateral trust and stall investment: “The longer it persists, the deeper the damage to bilateral trust and economic resilience will be.”
What about defence cooperation between India and US?
Interestingly, defence collaboration remains robust despite the trade war. The COMPACT initiative, launched earlier this year, aims to expand military co-production and joint exercises such as “Tiger Triumph.”
India is also negotiating major purchases of US defence equipment, including Stryker armoured vehicles and Javelin anti-tank missiles.
However, Shashi Tharoor cautioned that these advances could be overshadowed by the growing trade rift: “These efforts are being undermined by the tariffs, which signal distrust and coercion.”
What is Shashi Tharoor’s advice to Washington DC?
Shashi Tharoor outlined three key steps the US should take to prevent further deterioration of relations with India:
- Lift punitive tariffs immediately, particularly on labour-intensive sectors already struggling under previous tariffs.
- Accelerate free trade talks to bring Indian tariffs closer to the 15-19% levels enjoyed by other Asian economies.
- Re-engage diplomatically at the highest levels, including direct conversations between President Trump and Prime Minister Narendra Modi.
“India is not just a partner of convenience — it is a partner of consequence. The US must treat it as such,” Tharoor wrote, warning that alienating India could weaken the Quad alliance and destabilise the Indo-Pacific region.
Why this matters globally
India’s role as a democratic counterweight to China makes its partnership with the US vital for regional stability. A rift between the two countries could push New Delhi closer to Moscow and Beijing, altering the balance of power in Asia, Tharoor flagged.
Shashi Tharoor’s message was clear: while the damage to the India-US relationship is serious, it is not yet irreversible. But swift action is needed to rebuild trust and prevent a geopolitical realignment that could have far-reaching consequences.
Read Shashi Tharoor's article titled ‘America, don’t lose India’
English (US) ·