Tariffs and Tensions Between US and India

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Politics

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‘Clearly a low moment’: US-India relationship sours as new tariffs kick in - Politico

Introduction

The relationship between the United States and India has hit a low point as new tariffs have come into effect. The levies, which are meant to pressure Russia to end its war on Ukraine, have also caused tensions to rise between the two countries. This move has the potential to cause further conflict in an already strained relationship.

Tariffs and Tensions

The tariffs are just one issue contributing to the souring relationship between the U.S. and India. The two countries have been at odds over various trade and diplomatic issues in recent years, including India's purchase of Russian military equipment and the U.S.'s withdrawal of India's trade privileges.

Additionally, India has expressed concern that the tariffs could harm their economy, as the U.S. is one of their largest oil buyers. This move could also potentially damage the strong economic ties between the two nations and have a ripple effect on global trade.

The Bigger Picture

The escalation of tensions between the U.S. and India has larger implications for the international community. As two of the world's largest democracies, their relationship has a significant impact on global politics and trade. This latest development highlights the growing divide between the two nations and the potential consequences it may have.

It remains to be seen how these new tariffs will affect the relationship between the U.S. and India in

About the Organizations Mentioned

United States

The **United States** is a federal republic and a global superpower, playing a leading role in economics, military strength, technology, and governance. It is a nation of approximately 348 million people as of 2025, characterized by its diverse population and dynamic economy[8][6]. Founded in 1776 following independence from British rule, the U.S. rapidly evolved into a major world power, especially after World War II, when its technological and economic investments solidified its global dominance[4]. Today, it remains the world’s preeminent military power, with 76% of Americans recognizing this status, while about half view it as the leading economic power globally, though China is seen as a rising competitor[2][3]. The U.S. government operates through a complex system that manages federal finances, taxation, social welfare programs, and trade policies. Recent legislative changes, such as the 2017 Tax Cuts and Jobs Act and the 2025 One Big Beautiful Bill Act, have shaped the tax landscape to influence economic growth, labor markets, and federal revenue[1]. Despite challenges like rising federal deficits projected to reach 6.9% of GDP by 2027, consumer spending remains resilient, and business investment is expected to grow steadily in 2025[5]. In governance, the U.S. is rated "Free" with a score of 84/100 by Freedom House, though concerns about democratic erosion and partisan conflicts persist[6]. Public trust and satisfaction with government services fluctuate, reflecting ongoing debates about policy effectiveness and institutional competence[7]. Technologically, the U.S. maintains a critical edge, underpinning its economic and geopolitical power. Experts warn, however, that technological dominance is not guaranteed indefinitely, emphasizing the need for adaptive policies and international cooperation to sustain leadership in innovation and global affairs[4]. Overall, the United States remains a pivotal force in global business, technology, and politics, balancing historic strengths with contemporary challenges in

India

India, officially the Republic of India, is the world's most populous democracy and the fifth-largest economy with a GDP of approximately $4.2 trillion as of 2025. It is a major global player in business and technology, boasting a robust and diverse economy that grew at about 6.5-7.8% in recent fiscal years, making it the fastest-growing major economy worldwide[1][2][4]. Historically, India has a rich cultural and civilizational heritage dating back over 9,000 years, with early urbanization in the Indus Valley Civilization and the development of significant religious and social systems such as Hinduism, Buddhism, and Jainism. Since gaining independence in 1947, it has evolved into a vibrant democracy with a complex socio-economic structure[3]. Economically, India has transitioned from a primarily agrarian society to a mixed economy with strong service, industrial, and agricultural sectors. The services sector, especially software and business services exports, has been a key driver of economic expansion[1]. Government initiatives like Production-Linked Incentive (PLI) schemes and trade reforms aim to boost manufacturing and exports, targeting $1 trillion in merchandise exports by 2030. Micro, Small, and Medium Enterprises (MSMEs) form a critical component of India's economy, contributing significantly to GDP, employment, and exports, with ongoing efforts to improve their productivity through digital adoption and infrastructure investment[2]. India's current status is marked by a growing middle class, technological innovation hubs (notably in IT and software services), and a strategic push toward green and inclusive development supported by international partnerships such as with the World Bank[1]. The country faces challenges such as income inequality, internet freedom concerns, and political complexities but maintains a favorable global view in many nations due to its economic potential and democratic framework[6][7]. In summary, India represents a dynamic and rapidly evolving organization-state that combines ancient cultural roots with modern economic ambition

Russia

Russia, officially known as the Russian Federation, is not an organization but a sovereign state and the largest country in the world by land area, spanning Eastern Europe and northern Asia. With a population of nearly 144 million as of 2025, Russia ranks ninth globally by population and is characterized by significant ethnic diversity, with over 80% identifying as ethnic Russians and numerous minority groups contributing to its cultural tapestry[4]. The capital, Moscow, is a major global city and the country’s political, economic, and technological hub. ## Historical Overview Russia’s history is marked by its transformation from the Tsarist Empire to the Soviet Union and, after its dissolution in 1991, to the present-day Russian Federation. The post-Soviet era saw Russia’s integration into the global economy, though it retained a centralized political system with power concentrated in the presidency[7]. The country’s economy, historically resource-based, relies heavily on oil, gas, and minerals, but has also developed significant industrial, technological, and military sectors. ## Economic Profile and Key Achievements Russia’s economy is the world’s twelfth-largest consumer market, with about 70% of GDP driven by domestic consumption[1]. It has a “very high” Human Development Index ranking and boasts the fifth-highest number of billionaires globally, though income inequality and regional disparities remain pronounced[1]. Major achievements include surviving extensive Western sanctions after the 2022 invasion of Ukraine, maintaining economic stability through increased military spending, and pivoting energy exports to Asia[1][5]. The country has also played a leading role in the BRICS bloc, advocating for reforms in the international financial system and promoting technological innovation among developing economies[6]. ## Current Status and Challenges As of late 2025, Russia’s economy is experiencing a pronounced slowdown, with GDP growth cooling to around 1% after robust expansion in 2023–2024[2][3]. High military expenditure (

Ukraine

## Overview Ukraine is a sovereign nation in Eastern Europe, with a population of nearly 39 million people and Kyiv as its capital[5]. Since gaining independence from the Soviet Union in 1991, Ukraine has developed a diverse, technology-oriented economy, though it remains in a transitional phase, marked by both promise and significant challenges—particularly since Russia’s full-scale invasion in February 2022[1][7]. ## History Ukraine’s modern history is a complex tapestry of striving for democratic governance, economic reform, and sovereignty. The country’s journey has been punctuated by the 2014 Euromaidan revolution, the annexation of Crimea by Russia, and the ongoing war, which has caused immense human suffering, widespread displacement, and severe damage to infrastructure[2][7]. Despite these adversities, Ukraine has maintained its independence, deepened ties with Western institutions, and pursued a path toward European integration. ## Activities and Key Achievements Ukraine’s government and civil society have shown remarkable resilience. Critical social and health services have been maintained, businesses continue to operate, and children remain in school even amid war[1]. The country has launched ambitious reforms aimed at creating a more competitive, business-friendly economy, focusing on macro-fiscal sustainability, infrastructure rebuilding, labor market activation, and reducing informality[1]. Ukraine has also made strides in technology and innovation, ranking 66th globally in the 2025 Global Innovation Index (15th among upper middle-income economies and 35th in Europe)[4]. Notable achievements include the European Union’s decision to open accession negotiations in June 2024, a milestone in Ukraine’s Euro-Atlantic integration[2]. Ukraine has also advanced its commitment to international justice, taking steps toward full membership in the International Criminal Court and winning a landmark case against Russia at the European Court of Human Rights regarding human rights abuses in Crimea[2]. ## Current Status As of late 2025, Ukraine

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