India has expressed confidence in maintaining strong ties with the United States despite recent trade tensions marked by the imposition of a 25% tariff on Indian exports by the US. The Indian Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal emphasised that India-US relations have "weathered several transitions and challenges" and remain anchored in shared interests, democratic values, and robust people-to-people connections.

The government is hopeful that the relationship will continue to move forward constructively, focusing on the substantive agenda agreed upon by both countries. This positive outlook comes despite US President Donald Trump’s critical comments about India’s economy and trade policies, as well as his disparaging remarks regarding India’s ties with Russia.

Regarding the recent tariff announcement and associated penalties related to India’s procurement of Russian military hardware and oil, the MEA maintained that India’s bilateral relationships with various countries stand on their own merit and should not be viewed through the prism of a third country. India reiterated that it has a steady and time-tested partnership with Russia, underpinned by strategic and national security assessments.

On the matter of defence procurement, India stated its sourcing decisions are guided solely by national imperatives and strategic considerations. Similarly, energy sourcing decisions, including imports from Russia, are determined based on market dynamics and prevailing global circumstances.

The government made clear that no specific updates or changes in policy were announced regarding the purchase of Russian oil, even as the US indicated potential penalties for such imports.

The recent escalation comes after months of ongoing negotiations between India and the US for a bilateral trade agreement, which have not yet resulted in a breakthrough. India remains committed to securing sensitive interests, especially of its agriculture and dairy sectors, while trying to achieve a fair, balanced, and mutually beneficial pact.

India’s government underscored its commitment to protecting farmers, entrepreneurs, and micro, small, and medium enterprises (MSMEs), citing previous experience with carefully managing trade agreements like the Comprehensive Economic and Trade Agreement with the UK. Indian officials appear wary of social media attacks and expect any trade issues to be resolved through serious bilateral discussions rather than public disparagement.

Defence cooperation between India and the US continues to be strong and growing. The India-US COMPACT initiative, launched earlier in the year, aims to catalyse opportunities for military partnership, accelerated commerce, and technology development. Despite recent US trade measures and political rhetoric, India has expressed intention to further deepen defence ties with the US, highlighting the potential for expanded collaboration.

The broader context includes President Trump’s announcement of a reciprocal 25% tariff on Indian imports from August 1, along with unstated penalties for India’s military and energy dealings with Russia. Trump criticised India for having some of the highest tariffs globally and claimed the country had a large trade deficit with the US

 He also made controversial remarks about Pakistan’s oil reserves and announced support for US-Pakistan cooperation on oil development, which has been viewed with concern in New Delhi. The IMF and global economic data contradict Trump’s characterisation of India’s economy as “dead,” noting India as the fastest-growing major economy and the fourth largest by GDP.

India is navigating significant trade friction and political rhetoric from the US administration, it remains optimistic about its long-term partnership with the US. India continues to prioritise strategic autonomy, especially regarding defence and energy engagements, while pursuing trade negotiations aimed at mutual benefit without compromising national interests.

The resilience of India-US ties is rooted in a broad and deep relationship that spans strategic, economic, and people-to-people dimensions, with expectations that mechanisms sustaining this partnership will prevail amid current challenges.

Agencies