Editor's Correspondence for August 5, 2025
Published on August 5, 2025, by Sitaram Popuri in Bengaluru
The current state of US-India trade relations in 2025 has taken a sharp turn for the worse, with escalating tariffs and related disputes under the Trump administration causing significant mistrust and straining the longstanding bilateral relationship.
The US has imposed and subsequently increased baseline tariffs on Indian goods to 25 percent, and then doubled it to 50 percent, along with additional sanctions targeting Indian oil imports from Russia. India perceives these actions as coercive interference in its foreign policy, particularly regarding energy needs.
The Trump administration has also halted ongoing trade talks with India, which had been progressing over years to deepen commercial and security ties. The push for greater agricultural market access is a critical point of contention.
Disputes over India’s participation in BRICS, India-Pakistan relations, and the US White House’s welcoming of Pakistan’s army chief have further worsened diplomatic ties and complicated trade negotiations.
Criticism has extended beyond tariffs to India’s non-tariff barriers such as quality control orders (QCOs), which require local testing and certifications. These measures are viewed by the US as burdensome but remain important to Indian regulatory policy and domestic industry protection.
Despite these tensions, both countries continue some level of dialogue, exploring possible compromises on tariffs, agriculture, liquefied natural gas (LNG), and defense purchases to salvage the trade relationship. However, the overall environment remains tense, with major risks to the broader US-India economic and strategic partnership if the current policies persist.
In a separate development, the Indian government has decided to do away with the existing law of treating sulphur emissions in thermal power plants. This decision, despite the rising concern about climate change and its catastrophic effects on India, is expected to benefit unspecified entities. The health costs that common citizens will incur due to the absence of sulphur emission norms are likely to be multiple times the money saved by doing away with them. The citizens of India are urged to wake up to the dangers and force the government to reconsider the decision on sulphur emission norms.
Contributions to this article have also been made by Anthony Henriques, based in Mumbai. The new framework proposed by SEBI aims to establish transparency and monitoring of promoter transactions, and simplified disclosures proposed under the new framework would benefit larger firms involved in high-value recurring transactions. The framework would also ease the compliance burden of entities by setting materiality thresholds.
As the US-India trade relations continue to be tested, it is crucial for both nations to find a balance that ensures fair trade practices and mutual respect, while also addressing the complex geopolitical and environmental issues at hand.
- The opinion regarding the current state of US-India trade relations in 2025 is that it has deteriorated significantly, with escalating tariffs and disputes causing mistrust and straining the relationship.
- The US imposition of 50 percent tariffs on Indian goods, along with additional sanctions targeting Indian oil imports from Russia, is perceived by India as coercive interference in its foreign policy, particularly regarding energy needs.
- Subscriptions to general news services would undoubtedly be beneficial for those seeking to stay updated on the ongoing tensions between the US and India, as well as the potential compromises being explored in tariffs, agriculture, liquefied natural gas, and defense purchases.
- In the realm of finance, the new framework proposed by SEBI aims to establish transparency and monitoring of promoter transactions, benefiting larger firms involved in high-value recurring transactions.
- Criticism extends beyond tariffs to non-tariff barriers such as quality control orders in India, which are viewed by the US as burdensome but remain important to Indian regulatory policy and industry protection.
- In the environmental-science sector, the decision to do away with sulphur emissions in thermal power plants, while expected to benefit unspecified entities, risks causing multiple health costs for common citizens due to increased sulphur emissions.
