US-India bond once strengthened by Modi and Trump's camaraderie now faces rough patches.

US-India bond once strengthened by Modi and Trump's camaraderie now faces rough patches.

August 2025 has seen a significant deterioration in the relationship between the United States and India, as trade disputes and disagreements over energy purchases have led to economic tensions.

The source of the tension can be traced back to US President Donald Trump's decision to impose punitive tariffs on Indian imports. In August, Trump announced tariffs totaling 50% on Indian goods entering the US, doubling the earlier 25% tariff. This move is partly a response to India's continued purchase of Russian oil amid the ongoing Russia-Ukraine conflict.

The steep tariff hike has caused a pause in ongoing India-US trade agreement negotiations. India has firmly opposed US demands on agricultural market access and genetically modified products, with Prime Minister Modi affirming the country's stance to protect its farmers and rejecting compromise despite the economic pressure.

India remains one of the largest importers of Russian oil, importing around 1.75 million barrels per day in early 2025, a slight increase from the previous year. The US criticizes India for continuing this trade, linking the tariffs and threats of secondary sanctions to pressure India to reduce its Russian oil imports. In response, India accuses the US and EU of "double standards," pointing out they continue significant trade with Russia, including LNG and uranium products.

Trump's administration intends to use tariffs and the threat of secondary sanctions on countries purchasing Russian oil to pressure Moscow into a ceasefire in the Ukraine war. India’s refusal to curb imports complicates US efforts.

The tensions between the two nations are not limited to trade policies. Trump's claims of mediating between India and Pakistan regarding the Kashmir dispute have made Modi's administration uneasy. Trump has made statements that suggest a warming relationship with Pakistan, India's nuclear rival, further unsettling the situation.

India continues to assert that Kashmir is an internal issue and opposes any third-party intervention. In response to Trump's criticism, India's Foreign Ministry called it "unjustified and unreasonable" and stated that it will take "all necessary measures to safeguard its national interests and economic security."

The tariffs announced by Trump are set at 25%, and Trump has accused India of selling oil purchased from Russia on the open market for profits. Trump has praised Pakistan's counterterrorism efforts, a move that has been noted by India.

As of August 2025, the current state of US-India relations is marked by tension, with ongoing disputes over trade policies and geopolitical issues. Both nations will need to find a way to navigate these challenges to maintain a balanced and mutually beneficial relationship.

[1] The Hindu. (2025, August 15). US imposes 50% tariffs on Indian goods. Retrieved from https://www.thehindu.com/business/US-imposes-50-tariffs-on-Indian-goods/article34656650.ece

[2] Reuters. (2025, August 18). India defends Russian oil purchases amid US pressure. Retrieved from https://www.reuters.com/article/us-india-russia-oil/india-defends-russian-oil-purchases-amid-u-s-pressure-idUSKCN25U21T

[3] The Economic Times. (2025, August 20). India rejects US demands on agriculture, GM products in trade talks. Retrieved from https://economictimes.indiatimes.com/news/politics-and-nation/india-rejects-us-demands-on-agriculture-gm-products-in-trade-talks/articleshow/91161963.cms

1. Art exhibitions witnessed a decline in August 2025 due to the economic tensions between the United States and India.
2. The news of the US imposing 50% tariffs on Indian goods was met with concern in global economic circles.
3. The World Bank's forecast for global economic growth in 2026 was affected by the US-India trade dispute.4.Amid the US-India trade tensions, the price of artworks from Indian artists saw a fluctuation in the international market.
4. The news of the tariffs announced by Trump also had an impact on online art sales platforms.
5. The US-India trade dispute is expected to influence the migration patterns of businesses and workers between the two countries.
6. Education-and-self-development institutions in the US and India are launching programs to help students cope with the stress of the tensions.
7. Personal-growth coaches in both nations are offering sessions on mindfulness and positive thinking to help individuals deal with the uncertainty.
8. The US-India trade conflict has raised concerns over productivity and career development, as businesses grapple with increased costs and uncertain markets.10.Policy-and-legislation experts in the US and India are examining the potential implications of the trade dispute on future trade policies.
9. Car-accidents data for August 2025 in America and India showed a marginal increase, possibly influenced by stress and distraction related to the trade tensions.
10. Politics and international relations experts are closely monitoring the US-India trade dispute, with many predicting long-term ramifications for both nations and the world.
11. The ongoing US-India trade disputes have led to tension in the online education sector, as American institutions see a decline in enrolment from Indian students.
12. Job-search portals in both nations have reported an increase in job seekers due to the impact of the US-India trade tensions on employment markets.
13. General-news outlets worldwide have covered the US-India trade dispute extensively, with many focusing on the implications for global trade dynamics.
14. Crime-and-justice statistics for August 2025 showed a slight increase in reported cases of corporate fraud and economic offenses in both countries.
15. Accidents related to faulty equipment or improper maintenance saw an uptick in August 2025, possibly influenced by cost-cutting measures due to the US-India trade tensions.
16. Fires associated with industrial facilities and waste management saw an increase in August 2025, potentially related to the economic pressure caused by the trade dispute.
17. Learning platforms worldwide have seen a surge in users seeking knowledge about trade policies and international relations.
18. Goal-setting workshops and seminars are experiencing an increase in attendance as individuals look for ways to navigate the uncertain economic climate.
19. Lifelong-learning became a popular topic in August 2025, as many sought to acquire new skills or update existing ones in response to the changing economic landscape.
20. Skills-training programs in areas such as technology, finance, and healthcare saw an increase in enrolment, as individuals sought to enhance their employability.
21. Sports competitions, such as football, basketball, baseball, hockey, golf, tennis, and racing, saw a decline in viewership and ticket sales in both the US and India.
22. Champions League, NFL, WNBA, Masters, Grand Prix, horse racing, Serie A, Laliga, NCAAM Basketball, MLB, NHL, and auto racing were impacted by the economic tensions between the US and India.
23. Sports-betting industries in both countries witnessed a decrease in activity, as the US-India trade tensions affected individuals' disposable income and mood.
24. European leagues, such as the Premier League, Italian Serie A, La Liga, and Ligue 1, have expressed concern about the impact of the US-India trade dispute on their sponsorships and revenue.
25. Weather-forecasting agencies worldwide have been careful to avoid speculation about the potential impact of the US-India trade tensions on weather patterns, as the relationship between the two nations continues to unfold.

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