India-US Trade Tensions: India Hits Back at EU & U.S. Over Russia Trade Amid Trump’s Tariff Threats

 


In recent weeks, tensions have been escalating between India and the United States over trade issues, particularly with Russia's trade relationship with India. This has come amid threats from President Trump to impose tariffs on Indian goods. In response, India has taken a stand, hitting back at both the EU and the U.S. India doesn't seem to be pleased with US President Donald Trump's 25% tariff on India, threats of further levies, further penalties, and taunts that India is a "dead economy." In addition to claiming that India is a "bright spot" in the global economic landscape, the Indian administration is denouncing the duplicity of Western nations such as the US and the EU about their oil trade with Russia. As far as the bilateral trade between the US and India is concerned, the total trade between the US and India reached $132.98 billion in 2024 and $39.1 billion in the first quarter of 2025, as per the US export data and India-US trade relations. Let's delve deeper into this complex trade situation of the US-India trade tensions, why India Hits Back at EU & US Over Russia Trade, and its impact on the global trade data in 2025.

Understandingthe Background of India-US Trade Tensions

Trump referred to Russia and India as "dead economies" after enacting a 25% tariff on the country last week. Given the continued supply of Russian crude, Trump's pressure efforts to compel India to stop purchasing oil from Russia don't appear to be working.  India is attempting to mitigate the effects of the US 25% tax on Indian exports to the US.  The government is preparing a plan worth Rs 20,000 crore, and efforts are on to promote domestic brands.

Impactof Russia-India Trade on India-US Relations

India has a long-standing trade relationship with Russia, particularly in the defense sector, as per the customs data on Russia exports to India. This has been a point of contention for the U.S., which sees Russia as a strategic adversary. The U.S. has been pressuring India to reduce its dependence on Russian defense equipment and instead purchase more American-made goods. However, India has pushed back against these demands, arguing that its defense ties with Russia are crucial for its national security interests.

Trump’sTariff Threats

President Trump's administration has been vocal about its desire to reduce the U.S. trade deficit with India and has threatened to impose tariffs on Indian goods if the issue is not resolved. This has added another layer of complexity to the trade tensions between the two countries, which could further complicate the US imports from India.  

India’sResponse to the U.S. and the EU

Pushing Back Against Tariff Threats

In response to Trump’s tariff threats, India has made it clear that it will not be bullied into submission. Indian officials have stated that they are open to dialogue and negotiation, but will not hesitate to retaliate if tariffs are imposed on Indian goods.

Strengthening Ties with the EU

India has also reached out to the European Union as a counterbalance to the U.S. This move is aimed at reducing India's dependence on the U.S. market and diversifying its trade partnerships. Strengthening ties with the EU could also help India in its negotiations with the U.S., giving it more leverage in trade talks.

 

For more update:

Visit Us 👇

Website Link: https://statisticsaward.com/,

Nomination Link: https://statisticsaward.com/award-nomination/,

Registration Link: https://statisticsaward.com/award-registration/,

 

Comments

Popular posts from this blog

Data experts race to preserve US government statistics amid quiet purges

11 Essential Statistical Tools for Data-Driven Research

Trump Gets Rid of Those Pesky Statistics