Donald Trump has reignited his tariff rhetoric against India, threatening to impose reciprocal taxes for what he described as India’s “100% tariffs” on US goods. This statement has sparked renewed concerns over the state of US-India trade relations, particularly as Trump signals a return to his hardline stance from his first term in office. The timing of these remarks is significant, coming after the end of India’s preferential trade status in 2019, a move that had already strained bilateral ties. Despite efforts to reset the relationship under President Joe Biden, especially in countering China's growing influence in the Indo-Pacific region, Trump’s re-emergence on the political scene raises fears of escalating tensions and a potential tariff war.

During his presidency, Trump followed an "America First" policy that included renegotiating trade deals and imposing tariffs on countries he deemed unfair in trade practices. India was not immune to these tactics, with Trump targeting the country's trade practices and imposing retaliatory tariffs. Now, as he gears up for a possible second term, analysts are speculating that his return to office could herald a fresh round of trade confrontations, with India being a primary target. While India and the US had improved ties under Biden, particularly with a shared interest in curbing China's influence, Trump’s rhetoric could overshadow these efforts, particularly if his “America First” agenda regains momentum.

The question now is what this means for the future of US-India trade relations. Is a new tariff war on the horizon? India’s response will likely be crucial in determining the trajectory of the trade partnership. While both nations have strong strategic and economic ties, Trump’s previous actions and his current rhetoric could pose significant challenges. As the world watches, analysts and policymakers will be keenly focused on how both sides navigate these trade tensions and whether they can avoid a full-blown trade conflict.

Disclaimer:This video is taken from BBC News.