India’s Selective Protectionism as a Tool of Agricultural Sovereignt ...
As India looks towards the future, it should plan its agricultural policies as much as possible around the WTO-sanctioned flexibilities, which bolster their legitimacy when the country argues its position in multilateral spaces ...
The U.S.-India Tariff War and Its Implications for International Politic ...
12 September 2025, NIICE Commentary 11702 Subarna Moni Pradhan In August 2025, the United States implemented a sweeping 50% tariff on a broad spectrum of Indian imports. These included textiles, pharmaceuticals, automotive components, agricultural goods, and information technology products. The U.S. government justified this measure by expressing deep concerns regarding India's ongoing purchase of Russian oil. This occurred despite repeated diplomatic warnings and mounting international pressure, particularly from Western allies, to reduce such transactions. This bold and unprecedented action marked a dramatic turning point in U.S.-India relations. The relationship had previously been defined by decades of strategic cooperation, robust defense partnerships, and mutually beneficial trade expansion. The abrupt introduction of tariffs sent shockwaves through established supply chains. This led to significant disruptions in the timely movement of goods, delays at ports, and an immediate spike in operating costs for businesses on both sides. Prices of affected Indian products surged in the U.S. market, making them less competitive. As a result, American companies began seeking alternative suppliers from other emerging economies. The uncertainty triggered by the tariffs caused notable volatility in stock markets and a decline in investor confidence. There was widespread concern among multinational corporations with cross-border interests. Furthermore, the ripple effects extended far beyond bilateral relations. Global trade networks experienced heightened instability as governments, international organizations, and multinational corporations scrambled to reassess their trade policies, commercial alliances, and long-term strategic plans in light of rapidly shifting geopolitical dynamics. Geopolitical Realignments The tariff conflict has compelled India to reassess its foreign policy and strategic priorities. Historically, India has balanced relationships with Western powers, deriving benefits from technology transfers, defense cooperation, and trade agreements. The current crisis has exposed the vulnerabilities associated with dependence on a single bloc, prompting New Delhi to pursue new international partnerships. In direct response to U.S. sanctions and the broader realignment of global power, India has intensified its diplomatic and economic engagement with alternative global actors, most notably Russia and China. Recent months have seen the signing of new long-term energy agreements with Russia and the inauguration of expanded trade corridors through Central Asia. India has also increased participation in regional security dialogues such as the Shanghai Cooperation Organisation and BRICS summits, which operate outside the Western sphere. India is seeking to deepen its ties with resource-rich African nations and key economies in the Middle East. It is exploring joint ventures in energy infrastructure and advanced manufacturing. This multi-pronged approach is a clear demonstration of India’s commitment to strategic autonomy. It also shows its pursuit of a truly multipolar world order. At the same time, U.S. trade policies have created friction not only with India but also with several key international partners, including NATO allies. Countries such as Germany, France, and the United Kingdom have openly expressed concerns about Washington’s willingness to bypass multilateral frameworks for protectionist measures. These nations fear such actions could undermine the credibility and authority of institutions like the World Trade Organization. This could erode the legal and normative foundations that have governed global commerce for decades. The resulting discord within the Western bloc highlights the formidable challenge of maintaining unified alliances. This is especially difficult in an era marked by rising economic nationalism, shifting priorities, and growing protectionist sentiment. Impact on Strategic Partnerships The U.S.-India tariff conflict has significantly undermined the previously robust partnership in the Indo-Pacific region. While defense cooperation, including joint training and intelligence sharing, remains largely intact, economic relations have deteriorated. The tariffs have rapidly curtailed trade, adversely affecting key sectors such as textiles, pharmaceuticals, gems, agriculture, and information technology services. In response to mounting losses and heightened competition, Indian exporters have intensified efforts to access alternative markets in the Middle East, Southeast Asia, Africa, and Latin America. Several firms have diversified their product portfolios and invested in supply chain resilience to mitigate ongoing disruptions. The U.S. policy stance has also sparked considerable debate among Indian policymakers and business leaders, prompting a reassessment of participation in Western-led initiatives such as the Quad security dialogue, the Indo-Pacific Economic Framework, and international climate action agreements. As India asserts its interests in a fragmented and rapidly evolving global landscape, its approach to these partnerships may undergo significant transformation, potentially resulting in new regional alliances and a recalibration of its role in global governance. The U.S.-India tariff conflict stands as a direct and forceful challenge to established international trade norms and the authority of multilateral institutions. By imposing broad and punitive tariffs without recourse to dispute resolution in global bodies such as the World Trade Organization, the United States has set a controversial precedent. This threatens to upend the rules-based order underpinning global commerce. Observers warn that this approach may embolden other nations facing political or security disputes to adopt similar protectionist measures. Countries could use trade policy as a lever to advance geopolitical or national security objectives. Such a shift risks further weakening the multilateralism that has defined the post-World War II era. It accelerates the fragmentation of the global trading system as countries increasingly favor bilateral or regional agreements over complex, rules-based frameworks. The resulting uncertainty has already begun to erode trust in the international mechanisms that have supported decades of global economic growth, investment, and integration. The conflict also starkly illustrates the growing intersection of international trade with broader geopolitical strategy. The United States is using trade measures to influence India’s energy policy, specifically its continued reliance on Russian oil. This reflects a wider trend of utilizing economic instruments to achieve strategic objectives. This politicization of trade raises significant concerns among policymakers, business leaders, and economists. It threatens to disrupt established supply chains, create unpredictable commodity market volatility, and undermine the stability of the global economic system as a whole. The use of tariffs as a form of leverage in geopolitical disputes marks a sharp departure from traditional norms. It adds a new layer of complexity and risk to international commerce, investment planning, and cross-border cooperation. Conclusion The U.S.-India tariff conflict extends far beyond a conventional trade dispute. It represents a pivotal juncture in the evolution of the post-Cold War international order. The crisis has compelled nations worldwide to reassess their trade policies, strategic alliances, and broader approaches to economic diplomacy. In the ongoing fragmentation and multipolarization of the global system, the fundamental principles of multilateral trade, collective security, and international cooperation face unprecedented tests. The outcome of this trade conflict will have far-reaching ramifications, not only for the future trajectory of U.S.-India relations but also for the evolution of global governance structures. It will affect the credibility and effectiveness of international institutions and the broader rules and norms that sustain international relations. Whether this crisis leads to renewed efforts at global cooperation or further fractures the world into competing blocs will profoundly shape the future of economic growth, peace, and stability worldwide. Subarna Moni Pradhan is a PhD Scholar in the Department of Peace and Conflict Studies and Management, School of Social Sciences, Sikkim University, India. The views expressed here are the author's personal views ...