Donald Trump’s tariff policy seems to have morphed into as much of a tool of foreign policy as an economic strategy. But the administration’s decision to impose a 50% tariff on India, a key US ally as part of the Quad (Quadrilateral Security Dialogue) along with the US, Australia and Japan, could have significant repercussions – not just for international trade, but for global geopolitics.
The US rationale for the tariff hike is primarily political. The White House argues that India has been profiteering from buying and reselling Russian oil, in defiance of sanctions imposed after the invasion of Ukraine in 2022. This has helped Russia weather the effects of the sanctions and continue to fund its war in Ukraine.
Needless to say, the tariff policy and subsequent statements from both Washington and New Delhi have ruined a burgeoning bilateral relationship to the extent that the Indian prime minister, Narendra Modi, has been refusing to take Trump’s phone calls. For his part, Trump is no longer planning to visit India for the Quad summit later in the year.
