New Delhi (ABC Live): Trump Tariff Diplomacy: President Donald Trump’s aggressive tariff diplomacy has triggered waves across global trade, but its impact on the India–U.S. Indo-Pacific strategy reveals a complex picture. While short-term trade tensions are undeniable, the broader strategic relationship between the two democracies remains largely resilient, spanning defence, diplomacy, and critical technology.

?? Tariffs Test India–U.S. Economic Cooperation

In 2025, President Trump imposed a 26% tariff on Indian imports, citing unfair trade imbalances. This marked a continuation of his earlier protectionist policies, including the 2019 revocation of India’s GSP (Generalised System of Preferences) status. In response, India slashed tariffs on key U.S. exports like motorcycles and bourbon, even as its sectors—gems, auto parts, and electronics—suffered under the new levies.

Despite this, bilateral trade has grown. In 2024, total India–U.S. goods trade crossed $129 billion, with India holding a trade surplus of $45.7 billion. The launch of “Mission 500,” a pledge to double trade to $500 billion by 2030, has given the relationship new direction, despite the friction caused by tariffs.

?? Defence Ties Stay Strong Despite Tariff Strain

Even as trade tensions brewed, defence collaboration between India and the U.S. deepened. Both countries signed a 10-year defence framework and advanced key arms deals, including helicopters, maritime aircraft, and artillery. Joint exercises like Tiger Triumph expanded in scope, and technology transfer talks—including fifth-gen fighters and submarine systems—moved forward.

Trump’s tariffs have not deterred defence cooperation, underscoring that strategic priorities outweigh trade disputes.

? Quad Diplomacy and Indo-Pacific Alignment Hold Firm

India and the U.S. continue to strengthen their alignment in the Indo-Pacific, particularly through the Quad alliance (with Japan and Australia). Even as Trump’s tariffs created tension among allies, Quad meetings yielded commitments on maritime patrols, disaster relief, and critical minerals supply chains. India managed to separate trade irritants from strategic cooperation, ensuring the Indo-Pacific agenda remained on track.

? Technology Partnerships Grow—But With Risks

The launch of the TRUST Initiative (Transforming the Relationship Utilising Strategic Technology) expanded India–U.S. cooperation in AI, semiconductors, space, and biotech. However, looming U.S. tariffs on future Indian-made chips pose a threat. If imposed, they could hinder India’s efforts to become a global semiconductor hub.

Projects like the NISAR satellite, joint lunar missions, and digital infrastructure (including undersea cables) show progress. Yet, tariff unpredictability casts a shadow on long-term U.S. investment in Indian tech sectors.

? Conclusion: Strategy Stable, But Tariff Tensions Remain a Drag

Trump’s tariff diplomacy has undoubtedly strained aspects of the India–U.S. relationship. But it hasn’t derailed the larger Indo-Pacific strategy. Defence ties remain robust, diplomatic cooperation continues, and technology partnerships expand, though with caution. The key challenge lies in aligning economic nationalism with shared strategic goals.

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