It’s not just about trade: 3 flashpoints behind Trump’s relentless targeting of India | Explained

US President Donald Trump - File Photo

US President Donald Trump’s relentless verbal offensive against India has taken a sharper turn, revealing a cocktail of trade pressure, bruised ego, and geopolitical showboating. His recent threats to raise duties on Indian goods, after the announcement of 25 per cent tariff, have only deepened tensions between Washington and New Delhi.

Hours after Trump on Monday threatened to substantially raise tariffs on Indian goods over its energy ties with Russia, New Delhi mounted an unusually sharp counterattack on the US and the European Union for their “unjustified and unreasonable” targeting of India.

Firmly rejecting the criticism, India pointed out the double standards in targeting it on the issue and said both the US and the EU are continuing their trade relations with Russia.

India draws the line on agriculture

At the core of Trump’s anger lies India’s refusal to capitulate on trade, particularly in the politically sensitive agriculture sector. The Modi government has held firm on its protectionist policies, citing the importance of the farm sector to both economic stability and rural livelihoods. With nearly half of India’s workforce engaged in agriculture and the sector contributing over 18 per cent to the country’s Gross Value Added in 2022–23, there is little room for compromise.

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For India, this isn’t about trade optics, it’s about survival economics. Trump’s repeated demands to open Indian markets to American agricultural exports have hit a wall. Indian negotiators have consistently drawn a red line around farm subsidies, tariffs, and food security, sparking frustration in the White House.

The 25% tariff and MEA’s sharp pushback

Last week, Trump followed through on his threats, slapping a 25 per cent tariff on Indian exports while threatening of penalty on New Delhi over its energy ties with Moscow. A day after, he derided both Delhi and Moscow as “dead economies.”

To say the least, Trump calling India a “dead economy” is far from reality. India is currently the fastest-growing major economy, with GDP growth projected at 6.5% for 2025–26 by the RBI, compared to just 1.8–2% for the US, according to the Federal Reserve. Major US companies continue to invest heavily in India across key sectors like technology, defence, semiconductors, and pharmaceuticals.

Prime Minister Narendra Modi gave a befitting response to Trump’s economic arm-twisting, saying that India was on its way to becoming the world’s “third-largest economy” and must remain vigilant about its economic interests amid the “instability and uncertainty” that the global economy is facing.

Addressing a public meeting in his parliamentary constituency of Varanasi, Modi said: “As we talk about economic progress, I want to draw your attention to the current global situation… The global economy is currently facing multiple uncertainties and an atmosphere of instability. In such a scenario, countries across the world are focusing on their own interests. India is on the path to becoming the world’s third-largest economy. So we, too, must remain vigilant about our economic interests.”

Peace claims rejected, again

Trump’s ongoing attempts to position himself as a peacemaker in South Asia have also added fuel to the fire. Since May 10, he and his team have claimed nearly 30 times that the United States “stopped a war” between India and Pakistan. India, however, continues to reject any suggestion of foreign mediation.

During a recent parliamentary debate on ‘Operation Sindoor’ -- India’s precision military campaign against Pakistan -- Prime Minister Narendra Modi made it clear: “No world leader asked us to stop the operation.” Without naming Trump, the message was unmistakable: India doesn’t credit Washington for preventing conflict.

Pakistan, meanwhile, has welcomed the US role, adding to the contrasting narratives. For Trump, the denial seems personal. After failing to make progress on the Russia-Ukraine front, despite his bold “Day One” peace promise, India’s refusal to validate his South Asia diplomacy appears to have struck a nerve.

The Nobel Peace Prize angle

Adding to Trump’s irritation is India’s refusal to entertain talk of him being considered for the Nobel Peace Prize. White House Press Secretary Karoline Leavitt recently touted Trump’s “global peace efforts,” referencing South Asia. But the MEA didn’t bite.

“As far as the statements of the White House are concerned, please take your question to them,” MEA spokesperson Randhir Jaiswal said in a media briefing, curtly, shutting down any suggestion that India supports such recognition for Trump.

Trump’s rants against India are increasingly being viewed as a symptom of deeper disconnects. India’s strategic priorities, ranging from food and energy security to sovereign military action, are clashing with Trump’s transactional diplomacy and public need for validation.