Rafiq Dossani
India has enjoyed a privileged relationship with the United States for more than 20 years. The sudden imposition of high tariffs by the United States—first in retaliation for India's long-standing high tariffs on U.S. exports and then for its continued purchase of Russian oil—thus came as a profound shock in New Delhi.
After a phase of denial and recrimination, India sent a surprising signal: a tentative tilt toward China. Prime Minister Narendra Modi used his appearance at the Shanghai Cooperation Organization summit on August 31 and September 1 to underscore this possibility, staging photo opportunities alongside China's Xi Jinping and Russia's Vladimir Putin.
The Modi government's sense of betrayal stems from two sources. First, New Delhi believes it has always acted in good faith to accommodate Washington's interests. When President Trump denounced efforts by BRICS to create an alternative currency late last year, India, which was actively engaged in those discussions, quickly distanced itself; at the December BRICS foreign ministers' meeting, it declared that it had no interest in such plans. When Trump criticized high tariffs on Harley-Davidson motorcycles in January, India reduced them within weeks. In March, it abolished its digital services tax after Trump threatened to retaliate against countries that targeted U.S. tech firms.
If India wishes to restore trust, it must act with greater strategic clarity and take some calculated risks.
In return, India expected to land a preferential trade deal by early July, joining the United Kingdom and China as the only countries with such agreements. On July 8, Trump declared, “We're close to making a deal with India.”
That promise collapsed on July 31. India was instead hit with a 25 percent tariff, followed a week later by another 25 percent penalty over Russian oil purchases. India's frustration and sense of betrayal deepened when its justification of those purchases (citing Biden-era U.S. encouragement to “stabilize global energy markets”) was dismissed in Washington as profiteering. The argument also rang hollow domestically: Indian imports of Russian crude—averaging $50 billion annually since the Ukraine war—account for barely 3 percent of world oil trade, too little to support global price stability.