100 days of Donald Trump: How India has managed US-India ties amid tariffs, trade war & immigration crackdown

Time of India

01-05-2025

The first 100 days of Donald
Trump
's second term in the White House have been nothing short of transformative for US-India relations, reshaping the strategic and economic landscape between the world's two largest democracies with unprecedented intensity and ambition.
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Following his unprecedent return, Trump unleashed a torrent of executive actions - 140 orders in just over three months -signaling a bold, aggressive approach to governance that has directly influenced the trajectory of US-India ties.
PM Modi's visit to Washington
Prime Minister Narendra Modi's landmark visit to Washington in February became a defining moment for the tectonic shift in US-India ties, cementing a "COMPACT for the 21st Century" that PM Modi described as a partnership built on "TRUST-Transforming Relationship Utilizing Strategic Technology".
Capturing the spirit of this renewed alliance, PM Modi had announced: "When America's MAGA [Make America Great Again] meets India's MIGA [Make India Great Again], it creates a MEGA partnership for prosperity."
Trade and tariffs
The bilateral talks in February between Trump and PM Modi summit delivered concrete outcomes: A shared vision to double bilateral trade to $500 billion by 2030, an ambitious "Mission 500" that aims to rewrite the rules of engagement between the two economies.
Trade has been a central theme in Trump 2.0's engagement with India.
Trump, known for his hardline stance on trade, announced a reciprocal tariff policy targeting India's high tariffs, stating that the US will "charge as much as India charges", a move designed to level the playing field and protect American interests. Despite this tough posture, Trump hailed PM Modi as "doing a great job" and emphasised their "great friendship", underscoring a relationship that transcends transactional diplomacy.
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The administration imposed a 26% reciprocal tariff on Indian goods, targeting sectors such as steel, aluminum, and auto parts, while exempting pharmaceuticals, semiconductors, and energy products.
This move aimed to protect US manufacturing and address perceived unfair trade practices by India.
India responded by reducing tariffs on some imports to preempt harsher US tariff measures. Despite the tariffs, experts suggest India's exposure is relatively limited since most US exports to India face low import taxes.
The Trump administration's directive to impose reciprocal tariffs on trading partners created pressure but also opened the door for negotiations.
By late April 2025, the US and India agreed on the Terms of Reference for a Bilateral Trade Agreement (BTA), setting negotiation tracks for goods, services, digital commerce, and intellectual property protections. India offered to reduce tariffs on approximately $23 billion of US agricultural imports, while the US sought better access for manufactured goods, pharmaceuticals, and IT services.
Both sides aimed to finalise the first phase of the deal by end of this year, with a goal to double bilateral trade to $500 billion by 2030.
An important feature under discussion is India's potential offer of a 'forward most-favoured-nation' clause, which would grant the US any more favorable tariff terms India might extend to other countries, effectively future-proofing the agreement.
Immigration crackdown
Immigration remains a complex issue in Trump 2.0's India policy.
While the administration has cracked down on illegal immigration, it supports legal pathways for Indian students and professionals. Approximately 3,50,000 Indian students currently study in the US, and the administration's support for green cards for international students is a positive sign.
The Trump administration has intensified efforts to deport undocumented Indians, estimated at around 7,25,000, with about 20,000 already identified for repatriation.
This crackdown has sparked controversy in India. The Cente has committed to legal immigration and cooperating on repatriation, and the issue was a key topic during PM Modi's and Trump's discussions in February.
To address illegal immigration, both countries have agreed to combat trafficking networks exploiting Indian citizens seeking unauthorised entry into the US. Enhancements in visa processing, including opening new consulates in Bangalore and Ahmedabad, are planned to reduce visa wait times and curb illegal migration.
VP JD Vance's visit
JD Vance's visit to India from April 21–24, 2025, marked the first US vice-presidential visit in 12 years, underscoring the importance of the bilateral relationship. His trip coincided with a 90-day pause on US tariffs, providing a window for intensive trade talks.
Vance's meetings with PM Modi and external affairs minister S. Jaishankar focused on finalising trade negotiation terms, expanding defense and technology collaborations, and reinforcing India's role in the shared Indo-Pacific vision.
Defence cooperation
Defense partnership has also reached new heights. The leaders committed to a decade-long framework to deepen military collaboration, with Trump offering advanced fighter jets and PM Modi affirming joint development, production, and technology transfer. Highlighting the strategic convergence amid Indo-Pacific security challenges, PM Modi said: "India's defense preparedness is crucial, and America plays a vital role in this."
Trump's second term has continued to emphasise India's role as a critical partner in the Indo-Pacific strategy, particularly in counterbalancing China's growing influence. The administration has reinforced its commitment to the Quadrilateral Security Dialogue (QUAD), which includes the US, India, Japan, and Australia, focusing on regional security and economic cooperation. This alignment reflects a shared interest in maintaining a free and open Indo-Pacific, with India's strategic autonomy respected by the Trump administration, which avoids interference in India's internal affairs-a departure from the more vocal approach of some Democratic lawmakers.
The Trump administration's approach to terrorism and radicalism also finds common ground with India, especially in light of recent terrorist incidents in the US and India's long-standing battle against terrorism. This shared concern has paved the way for enhanced counterterrorism cooperation between the two nations.
Pahalgam attack
The period was also marked by heightened regional tensions following the deadly Pahalgam terror attack on April 22, which targeted 26 tourists and was linked to Pakistan-based terrorist proxies.
Following the Pahalgam terror attack in Kashmir, the Trump administration took a firm stance supporting India's right to combat terrorism and maintain regional stability. The US underscored its commitment to working with India to counter terrorism emanating from Pakistan-based groups, signaling a tougher approach towards Pakistan compared to previous administrations.
A US spokesperson emphasised, 'The United States encourages all parties to work together towards a responsible resolution,' while reaffirming strong support for India's fight against terrorism.
PM Modi, addressing the nation, declared, 'There is deep anguish in my heart... terrorists aimed to destabilize the region's growing prosperity and peace,' promising severe consequences for the perpetrators.
This shift reflects the broader strategic realignment in South Asia, with the US increasingly viewing India as a key partner in promoting peace and security in the region. The enhanced Indo-US cooperation on counterterrorism is expected to strengthen India's position as a regional leader and contribute to stability in South Asia.
Ties tested but unshaken
Despite the turbulence in global trade and security, US-India ties have remained on an 'even keel,' with New Delhi skillfully navigating the complexities of tariffs, immigration, and defense cooperation under Trump's assertive second term.
The relationship now stands as a pillar of stability and shared democratic values in an increasingly volatile world order.