New Delhi/Washington – August 8, 2025
In a move that has significantly escalated trade tensions between the United States and India, US President Donald Trump announced that his administration will not resume trade talks with India until a long-standing tariff dispute is resolved. This statement came hours after the White House issued an executive order doubling tariffs on Indian imports from 25% to 50%.

The announcement marks a new low in bilateral economic relations, with the US citing India’s continued oil imports from Russia as a major concern. The executive order claims these imports—whether direct or through intermediaries—pose an “unusual and extraordinary threat” to the national security and foreign policy interests of the United States.

Speaking to Asian News International (ANI) reporters at the Oval Office, Trump was asked whether he foresaw any talks resuming in light of the new tariffs. His reply was blunt: “No, not until we get it resolved.”

The updated tariff policy takes immediate effect on some goods and will fully apply in 21 days. While items already in transit and select categories may receive exemptions, the majority of Indian exports will now face a 50% levy at US ports. The executive order also grants the US President power to amend these measures in response to future geopolitical developments or retaliatory actions by India or other nations.

India, meanwhile, has responded with defiance rather than concession. Prime Minister Narendra Modi, speaking at the MS Swaminathan Centenary International Conference in New Delhi, emphasized that India would prioritize its domestic interests—particularly those of farmers and rural communities—over foreign pressure.

“For us, the interest of our farmers is our top priority,” PM Modi declared. “India will never compromise on the interests of farmers, fishermen, and dairy farmers. I know we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”

India has long resisted opening its agricultural and dairy sectors to foreign competition, arguing that doing so would endanger the livelihoods of millions of small-scale producers. The new tariffs are expected to impact a wide range of Indian goods, including textiles, auto parts, spices, and specialty chemicals.

The standoff has broader implications for global trade and geopolitics. Analysts note that it could impact defense cooperation, tech collaboration, and diplomatic coordination between the world’s two largest democracies. Additionally, it adds pressure on India as it seeks to navigate a multipolar world with ties to both Western powers and strategic partners like Russia.

While previous trade spats between India and the US have been resolved through negotiations, the current climate suggests a longer standoff. Both leaders appear committed to their respective domestic agendas—Trump to his protectionist policies, and Modi to safeguarding India's rural economy.

Until either side softens its stance, the prospect of renewed trade dialogue remains remote.