The president of the United States, Donald Trump has changed tone in a matter of hours. After writing on his social network that the United States had “lost to India and Russia against the deepest and most dark China,” the president later said before journalists that “I do not think we have done it” and claimed his personal relationship with Narendra Modi: “I will always be a friend of Modi … India and the United States have a special relationship. There is no reason to worry.” The statements occur in full tariff climb, after the White House raised up to 50% rates to numerous Indian imports.
The rectification came in parallel to the response of New Delhi. The Indian Prime Minister published in X that “deeply appreciates” and “corresponds fully” to the feelings expressed by Trump, and stressed that bilateral ties constitute a “very positive and global strategic association very positive and future oriented.”
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The commercial front is, however, severe. Executive Order 14329 imposes an additional 25% tariff to products of Indian origin from August 27, which adds to a previous 25%, up to a total of 50%. The Office of Customs and Border Protection (CBP) published the application guide and reference tariff codes for entry into force. Some items are excluded by specific regimes and there is a limited exemption for goods already in transit before cutting.
From the Indian perspective, the potential damage is high. The Government itself estimates that the taxes will affect 48.2 billion dollars in exports, and the global Trade Research Initiative center calculates that they could subtract up to 0.9 percentage points to GDP.
Trump’s rhetorical turn occurred after the summit of the Shanghai Cooperation Organization (OCS) in Tianjin, where Modi was photographed by talking with Xi Jinping and Vladimir Putin on his first visit to China in seven years, a gesture that has fed the story about an alleged drift of India towards the Beijing-West
In Washington, messages are still disparate. The Secretary of Commerce, Howard Lutnick, hardened the line by reproaching India to open markets, to reduce Russian oil purchases and move away from the BRICS, urging New Delhi to “decide which side to be.” The Commerce Department identifies Lutnick as head of the portfolio since February.
Even with tension, both governments maintain a dialogue lane. The Indian Commerce Minister Piyush Goyal confirmed that there are contacts for a bilateral agreement that cushions the dispute and allows the relationship to be redirected, key in the Indo-Pacific architecture.
The background is strategic in addition to commercial. The Tianjin summit staged the harmony between Beijing and Moscow and revived the debate on the margin of Indian maneuver, which claims its strategic autonomy while modulating its equilibrium between partners. Analysts consulted by Arab News They are likely that the diplomatic “yo” continues, and warn that Washington’s volatility also weighs in allied capitals.