The tariffs threaten to disrupt India’s access to its largest export market, where shipments totalled nearly US$87 billion ($134 billion) in 2024, hitting sectors like textiles, footwear, gems and jewellery.

It also marks a shift from the warm ties witnessed during Trump and Indian Prime Minister Narendra Modi’s February meeting, analysts said, pointing out Trump’s recent remarks calling India’s economy “dead”, its trade barriers “obnoxious” and accusing the country of profiting from cheap Russian oil while ignoring the killings of Ukrainians in Russia’s three-and-a-half-year-old invasion of its neighbour.

‘Extremely unfortunate’

The development comes as Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as relations with the US fray.

Last week, US treasury secretary Scott Bessent warned China that continued Russian oil purchases could trigger new tariffs, as the US prepares for the expiry of a US-China tariff ceasefire on 12 August.

Disruption to Indian exports

“With such obnoxious tariff rates, trade between the two nations would be practically dead,” said Madhavi Arora, economist at Emkay Global.