Key Highlights:
- India-US relationship reaffirmed by President Trump and PM Modi, both describing it as “very special”
- India-US relationship sees new tensions after US imposes 50% tariffs on Indian goods over oil trade with Russia
- India-US relationship remains strategic as both sides continue trade negotiation and diplomatic engagement
India-US Relationship: Opening Overview
The India-US relationship is at a critical juncture, with President Donald Trump publicly declaring the India-US relationship to be a “very special relationship”—despite new political and economic tensions. The India-US relationship, described by both Trump and Prime Minister Narendra Modi, remains under the global lens, as leaders prioritize the India-US relationship amid shifting global alliances and strategic competition.
Over recent weeks, the India-US relationship has faced trade frictions and public remarks from leaders on both sides as new US tariffs on Indian exports and India’s oil purchases from Russia complicate diplomatic dynamics. Yet the enduring strategic value, rooted in shared democratic values, economic ties and personal rapport between Trump and Modi, remains central to the global order. The partnership continues to develop through high-level engagements and proactive diplomacy, demonstrating persistent importance between the two democracies.
Trump now seems to be walking back some of the hostility that we saw yesterday – especially from @howardlutnick.
— Vikram Chandra (@vikramchandra) September 6, 2025
Says
*India and the US have a special relationship
*Will always be friends with Modi
*There is nothing to worry about
*I don’t think we have lost India to China.… https://t.co/zD3c7HTmcj
Diplomatic Volatility and Strength of Strategic Partnership
- President Trump and PM Modi repeatedly highlight the “very special” nature of bilateral ties
- Personal friendship and diplomacy signal resilience despite new tensions
The bilateral partnership has entered a phase of intensified scrutiny, with world leaders—and global markets—watching each move tied to diplomatic relations. After President Trump described ties as a “very special relationship,” he emphasized that there is “nothing to worry about” in bilateral relations, despite “moments on occasion.” Trump repeatedly underscored the partnership, explaining he will “always be friends” with PM Modi and calling ties “special” even while voicing concern about India’s ongoing oil deals with Russia.
Prime Minister Modi also responded by calling the partnership “forward-looking” and a “Comprehensive and Global Strategic Partnership.” For both sides, the bilateral relationship remains essential for economic prosperity, digital cooperation, energy security, and security in the Indo-Pacific.
While Trump cited personal friendship as a key driver, his administration’s disappointment with India’s trade and foreign policy choices shows the partnership can experience periods of unpredictability. The strategic alliance is tested by global alignments but both governments have signaled strong ongoing commitment to cooperation.
Economic Tensions Within India-US Relationship
- 50% tariffs imposed on Indian exports by the US punctuate a turbulent period
- The partnership remains critical for bilateral and global trade flows
The bilateral partnership was jolted by the US administration’s imposition of a 50% tariff on Indian goods—one of the highest on record for American trade partners. This occurred as the US expressed displeasure at India’s growing purchases of Russian oil, viewing these moves as contrary to the broader alignment underpinning diplomatic cooperation.
These economic measures threaten to impact the immense trade value within the partnership. According to official data, merchandise exports from India to the US reached about $78 billion in 2023, with robust growth year-on-year, reinforcing how bilateral trade underpins major global supply chains.
Despite the short-term shocks, both sides continue to engage in regular trade talks and negotiation. The strategic partnership therefore remains a lynchpin for global commerce and technology, even as current disputes highlight vulnerabilities in economic cooperation.
| Year | Indian Merchandise Exports to US (US$ billion) | Services Trade (US$ billion) |
|---|---|---|
| 2018 | 54.3 | — |
| 2019 | 60.0 | — |
| 2020 | 61.8 | — |
| 2021 | 67.0 | — |
| 2022 | 73.0 | 53.0 |
| 2023 | 78.0 | 55.0 |
The Geopolitical Context of India-US Relationship
- The bilateral relationship faces cross-currents as India engages with both US and alternative strategic blocs
- Leaders maintain the partnership as central to democratic and security aims
Amid multipolar shifts, bilateral ties come under pressure as India participates in forums involving Russia and China. President Trump’s pointed comments about the US “losing India and Russia to deepest, darkest China” reflected American concerns as the global alignment of the partnership is tested.
Even as these doubts arise, the strategic alliance has proved resilient. Both leaders downplayed tensions, with Trump clarifying his friendship with Modi and Modi affirming India’s prioritization of bilateral cooperation. Strategic partnership mechanisms around defense, technology transfer, and counter-terrorism keep the alliance robust and evolving.
The partnership is further reinforced by people-to-people ties, with a large Indian diaspora and growing technological and educational exchanges. For policymakers and diplomats, safeguarding the strategic alliance remains a key pillar in managing Asia’s complex security environment.
Policy Solutions and the Future of Partnership
- Both nations double down on advancing the “substantive agenda” of cooperation
- The partnership adapts to new global realities while retaining core drivers
Despite current public disagreements, the strategic alliance continues to advance through working groups, summits, and diplomatic channels. Both governments have confirmed their intention to resolve friction pragmatically, recognizing that the strategic, economic, and technological reach of cooperation far outweighs temporary setbacks.
Official statements underscore India’s unwavering engagement with the US side, while the White House reaffirms the importance of bilateral ties for both economies. The partnership, officials state, has weathered many transitions, and the long-term trajectory remains upward and positive.
The strategic alliance is expected to play a defining role in shaping global order in the coming years. Innovation, energy partnership, climate commitment, and Indo-Pacific security are set to sharpen the strategic focus of cooperation.
Closing Assessment
The strategic partnership stands at an inflection point but remains underpinned by decades of diplomacy and shared values. While President Trump’s assertive statements and new tariffs injected volatility into bilateral relations, both nations’ leaders and diplomats have so far preserved dialogue and common interests. The partnership, with its history of overcoming differences and adapting to challenge, showcases the resilience of global partnerships. As geopolitical and economic realities evolve, the strategic alliance will likely emerge even more consequential, providing a stabilizing anchor for both democracies and the global system.
