Price described the United States–India relationship as the defining alliance of this era, one that will influence geopolitical dynamics involving China and Russia. He said he could not understand why the United States, already confronting Beijing and engaged in hostilities with Moscow, would impose such steep duties. He praised New Delhi’s posture, calling Prime Minister Narendra Modi “pretty smart” for signalling that India retains multiple strategic options rather than aligning with one bloc.
These remarks come amid an escalating diplomatic and trade crisis that began in August when the Trump administration raised tariffs on Indian goods to a cumulative 50 per cent—an initial 25 per cent reciprocal levy followed by an additional 25 per cent penalty tied to India's import of Russian oil—which New Delhi denounced as “unfair, unjustified and unreasonable”.
Experts and policymakers have voiced deep concern over the consequences of these tariffs. Jeffrey Sachs condemned the move as a strategic misstep that will damage U. S. interests, push India toward the BRICS bloc, and isolate America diplomatically. Former diplomat Kenneth Juster echoed those concerns, noting that the tariffs could reverse decades of relationship-building.
Inside the U. S., criticism has also mounted. A divided appeals court declared many of Trump’s tariffs—including those on India—illegal, adding legal pressure to the economic fallout. Former National Security Advisor Jake Sullivan accused the president of undermining trust and strategic cooperation with New Delhi.
India, for its part, has rejected suggestions that the steep tariffs would force it to shift foreign or energy policy; officials defended purchases of Russian oil as necessary to secure affordable energy for 1.4 billion people. The foreign ministry also dismissed reports that defence procurements from the United States had been paused, affirming that acquisition processes remain in motion.
Analysts warn that trust has been eroded. NATO advisor Krystle Kaul cautioned that the tariffs—implemented unilaterally—could jeopardise strategic cooperation built steadily over decades. She characterised the move as divergent from broader U. S. policy sentiments.
This standoff reflects a broader geopolitical divergence. Trump's tariffs, framed as part of his “Liberation Day” trade agenda from April 2025, have triggered retaliatory pressure across multiple fronts. The term “reciprocal tariffs” summarised the administration’s approach—penalising nations with whom the U. S. had large trade deficits, with India among the hardest hit.