Scott Bessent: Trade relations between India and the United States entered a tense phase on Tuesday as the U.S. administration officially doubled tariffs on Indian imports to 50%. The move, announced under President Donald Trump’s economic strategy, is aimed at reshaping trade balances but has raised concerns over its impact on bilateral ties.
US Tariffs on India Double to 50%, Scott Bessent Says Nations Will ‘Come Together’
Despite the escalation, U.S. Treasury Secretary Scott Bessent struck a hopeful note. He acknowledged that relations with India remain “complicated,” yet emphasized that both nations share long-term strategic and economic interests. “At the end of the day, I think we’ll come together with India,” Bessent remarked, signaling Washington’s intent to maintain dialogue even amid sharp policy measures.
Analysts believe the tariffs could push India to strengthen its domestic manufacturing
India, meanwhile, is preparing a multi-pronged strategy to mitigate the impact of the tariffs. Officials are exploring trade diversifications, protective measures for exporters, and diplomatic engagement with Washington to ensure that key sectors such as textiles, pharmaceuticals, and engineering goods are not disproportionately hit.
Analysts believe the tariffs could push India to strengthen its domestic manufacturing push while also seeking new markets. However, they caution that prolonged trade frictions may strain not only economic cooperation but also the broader strategic partnership between the two democracies.
The coming weeks will test whether economic pragmatism prevails over protectionist policies as New Delhi and Washington attempt to balance competition with collaboration.
