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Transactionalism in U.S. - India relations
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India now incurs higher U.S. tariffs than China. What does it say about Trump's foreign policy?
CNBCยท 2025-11-03 08:02
Core Points - The strategic relationship between India and the U.S. has significantly deteriorated, with experts suggesting that rebuilding trust could take years [2] - U.S. tariffs on India have increased, with a 50% tariff imposed in August, including secondary duties of 25% on Russian oil purchases, contrasting with lower tariffs on China [6][7] - President Trump's approach towards India has shifted from valuing it as a strategic partner against China to a more transactional relationship [4][3] U.S.-India Relations - The U.S. has imposed higher tariffs on India than on China, with a notable 50% tariff and additional duties on oil imports [7] - Experts highlight that the relationship built over two decades has eroded due to various factors, including steep tariffs and visa fees [2] - The perception of India as a partner in balancing China has diminished under the current U.S. administration [3] U.S.-China Relations - Recent meetings between U.S. and Chinese leaders have led to a trade truce, reducing tariffs on Chinese goods from 20% to 10% on fentanyl-related products, resulting in an overall tariff rate of around 47% [6] - The establishment of military-to-military channels between the U.S. and China aims to deconflict and deescalate tensions [5] - The U.S. appears to be prioritizing its relationship with China over India, marking a significant shift in foreign policy [4]