Story perspectives

India's Foreign Policy Shifts Amid U.S. Trade Tensions

8/23/2025

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Summary

Story summary

India's foreign minister, S. Jai Sankar, stressed non-alignment and national interest amid the U.S. tariff war.
The U.S. is India's largest trading partner, with bilateral trade at $134.84 billion for fiscal year 2024-25.
Tensions exist as Trump aims to open India's agricultural market, opposed by PM Modi to protect small farmers.
India's foreign policy is shifting towards closer ties with China and Russia in response to U.S. tariffs.
Upcoming summits with Modi, Xi Jinping, and Putin may redefine India's strategic alliances.

History

Historical Context

In 2018, the U.S. imposed tariffs on steel and aluminum, igniting global trade tensions and causing a 10% decline in U.S.-India trade. As India, under Prime Minister Narendra Modi, seeks closer ties with Russia and China, these tariffs reflect a broader shift in regional alliances, potentially diminishing U.S. influence in South Asia and complicating strategic interests.

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Story summary

India's foreign minister, S. Jai Sankar, stressed non-alignment and national interest amid the U.S. tariff war.
The U.S. is India's largest trading partner, with bilateral trade at $134.84 billion for fiscal year 2024-25.
Tensions exist as Trump aims to open India's agricultural market, opposed by PM Modi to protect small farmers.
India's foreign policy is shifting towards closer ties with China and Russia in response to U.S. tariffs.
Upcoming summits with Modi, Xi Jinping, and Putin may redefine India's strategic alliances.

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