India-U.S. Relations in the Wake of U.S. Tariffs on India: Economic and Geopolitical Implications

Dr. Prem Kumar Patwa

Assistant Professor, A.N.D.K.P.G. College, Babhnan, Gonda 

Abstract

The United States’ imposition of a 50% tariff on Indian goods, effective August 27, 2025, represents a significant shift in the bilateral relationship between the two nations, driven by a combination of economic protectionism and geopolitical motivations. This tariff, comprising a 25% reciprocal duty and an additional 25% penalty linked to India’s continued imports of Russian oil, threatens India’s $87 billion export market to the U.S., with profound implications for key industries such as textiles, gems, and jewellery. Beyond economics, the tariffs strain a strategic partnership critical to countering China’s influence in the Indo-Pacific region, raising questions about the future of U.S.-India relations. This paper examines the economic vulnerabilities created by the tariffs, the geopolitical consequences for India’s global positioning, and the strategic responses India has adopted to mitigate the crisis. Drawing on trade data, policy statements, expert analyses, and economic projections, the study explores how India can navigate these challenges while maintaining its economic stability and strategic autonomy. Recommendations are provided for both nations to address the crisis, restore trust, and preserve a partnership vital to global stability in an increasingly polarized world.

How to Cite: Patwa, P. K. (2025). India–U.S. relations in the wake of U.S. tariffs on India: Economic and geopolitical implications. Anubodhan, 1(3), 14–23.