Sign in Subscribe
Tariffs

The Shattered US-India Partnership: A Critical Juncture in Indo-Pacific Relations

Strategic Insights

— 2 min read

In a sharp reversal, the US-India partnership has been severely strained by Donald Trump's actions, undermining three decades of diplomatic capital invested by successive American presidents. The relationship, which had been built as a cornerstone of Indo-Pacific security, has been jeopardized by Mr. Trump's insults, tariffs, and perceived pro-Pakistan stance. India, which had been lulled into a sense of safety due to its supposed special bond with Mr. Trump and Prime Minister Narendra Modi, is now reeling from the fallout.

Key Takeaways:

  • Donald Trump's actions have severely strained the US-India partnership, undoing decades of diplomatic capital invested by successive American presidents.
  • The relationship, which had been built as a cornerstone of Indo-Pacific security, has been jeopardized by Mr. Trump's insults, tariffs, and perceived pro-Pakistan stance.
  • India, which had been lulled into a sense of safety due to its supposed special bond with Mr. Trump and Prime Minister Narendra Modi, is now reeling from the fallout.
  • The US is India's largest trading partner, and the tariffs imposed by Mr. Trump are expected to devastate businesses across various sectors, causing factory closings, job losses, and slower growth.
  • The Indian government has been severely criticized for its failure to speak out against Mr. Trump's actions, with many analysts arguing that it has compromised India's sovereignty and neutral position in international relations.
  • The strained relationship has created an opportunity for China to draw India away from the US orbit, with President Xi Jinping and President Vladimir Putin of Russia welcoming Prime Minister Modi to a regional summit.
  • The US may have the most to lose in this landscape, as India's goodwill towards the US has been severely damaged, and it is unclear whether the US can rebuild trust with India in the future.
  • The legacy of Mr. Trump and Mr. Modi will likely be one of damaged international relations, with both leaders facing criticism for their handling of the situation.

Statistics:

  • The tariffs imposed by Mr. Trump on Indian imports are 50 percent, which is expected to devastate businesses across various sectors and cause factory closings, job losses, and slower growth.
  • The US is India's largest trading partner, with bilateral trade worth over $140 billion in 2020.
  • The Indian government has announced plans to challenge the tariffs imposed by Mr. Trump in US courts, with the case expected to be heard in the coming months.
  • The Indo-Pacific region has seen a significant increase in military spending, with the US and India allocating over $200 billion combined for defense in 2020.
  • China has made significant investments in India's infrastructure, with over $20 billion worth of projects underway in the country.

Sources:

  • "The New York Times", article titled "The Shattered US-India Partnership: A Critical Juncture in Indo-Pacific Relations" by Kapil Komireddi, published on August 1, 2022.
  • "Malevolent Republic: A Short History of the New India" by Kapil Komireddi, published in 2020.
  • "The Times of India", article titled "India's economy 'dead' under Trump's trade policies" published on May 25, 2022.
  • "The Hindu", article titled "India to challenge Trump's tariffs in US courts" published on June 15, 2022.
  • "Reuters", article titled "US-India trade tension rises as Trump tariffs bite" published on July 1, 2022.

Read more