US President Donald Trump described Prime Minister Narendra Modi as a good friend and great Prime Minister amidst a tariff controversy with India. He said that there is special relations between India and America and sometimes moments of stress can come, but the relationship between the two countries will remain strong.

Prime Minister Modi, reacting to Trump’s comment, wrote on X (Twitter) that he deeply appreciates the positive evaluation of the feelings and relationships of the US President and fully supports it.

Deeply Appreciate and Fully Reciprocate President Trump’s Sentiments and Positive Assessment of Our Ties.

India and the US have a very positive and forward-looking comprehensive and global strategic partnership.@Realdonaldtrump @Potus https://t.co/4hlo9wbpef

– Narendra Modi (@narendramodi) September 6, 2025

Why India and America relations deteriorate?

Recently, the US has imposed up to 50 percent tariffs on imports coming from India. In August, the Trump administration imposed 25 percent tariff. After this, an additional 25 percent fee was also imposed on India for buying oil from Russia. These decisions have caused sourness in business relations between the two countries. However, India and America are still ally at the strategic and diplomatic levels.

Modi’s emphasis on strategic partnership

PM Modi said that there is a positive and visionary widespread global partnership between India and America. The partnership of the two countries is constantly strengthening with the cooperation in defense, technology, energy and cooperation in the Indo-Pacific sector. This is the reason that despite business tension, both leaders are giving priority to personal relations.

Indo-US relations balance of friendship and stress

The relations between India and America have never been very stressful. Even though there is a difference of opinion on business or policy, both countries are important partners of each other in a strategic point of view. Both countries cooperate in the fight against security and terrorism. To maintain power balance in the Asia-Pacific region, it is very important for the two countries to live together.

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US President Donald Trump has imposed a 50 percent tariff on India. This decision of Trump is being opposed in his own country. Former US National Security Advisor (NSA) Jack Sulivan has said that President Donald Trump has put more business pressure on India by applying 50 percent tariff. Sulivan believes that due to Trump’s policies, India is gradually leaning towards China.

Jack Sulivan said in a podcast, ‘When he talks to leaders of other countries, he says that America is no longer worth trusting. Many countries consider America to be the biggest problem, while China is coming forward like a responsible and reliable country. He said that earlier America’s image was strong, but now China’s popularity is growing rapidly and America’s credibility is becoming weak.

India is looking towards China in compulsion: Sulivan

Giving the example of India, Sulivan said, “The attempt to form a deep and permanent relationship with India was going on with the consent of both parties, but Trump made such a big business attack on India that now Indian leaders have to say that maybe we have to go to Beijing and sit with China, so that a balance can be made against America.”

50% tariff shocks Indian exports

The Trump administration has implemented a 50% tariff on India from 27 August. This is the highest tariff imposed on any country. It is believed that this will have a profound impact on India’s economy and employment. Trump said the reason for the additional 25% fee was said by India to buy oil from Russia. This heavy tax is expected to affect India’s clothes, jewelery and mechanical equipment industry the most.

Trump’s ‘resentment’ reason?

Meanwhile, a report by American investment bank Jefferies claimed that Trump’s personal resentment is the real reason for imposing tariffs on India. In fact, in May, Trump wanted to mediate the India Pakistan dispute, but India refused. Apart from this, the agricultural sector has also been described as a big issue of conflict between the two countries.

Also read- Donald Trump has a big shock on tariff, court told illegal; What did US president say?

Business tension between America and India seems to be deepening once again. The decision of US President Donald Trump imposing 25% additional tariffs on India’s goods has created a stir in political and diplomatic circles. The move is being criticized all -round, and now China has also openly come out in support of India. The Chinese ambassador has targeted Trump as a “crook” and described it as a threat to the global trade system. This incident has happened at a time when speculation about Prime Minister Modi’s possible China visit is also sharp.

America’s 50% tariff on India
US President Donald Trump has announced an additional 25% tariff on India, which has now increased the total fee to 50%. This decision has been taken due to India’s continuation of oil trade with Russia. The White House said that this decision has been taken in response to India’s “frequent inaction and vengeance”. This tariff can affect India’s exports that already depend on a large market like America.

Chinese ambassador’s sharp comment: Trump said “crooks”
Chinese Ambassador to New Delhi, Shoo Faihong, on Thursday criticized US President Trump and called him a “crook”. He wrote without naming X, ‘If the crook is given an inch, he takes a mile.’ He also shared a part of the recent phone call between Chinese Foreign Minister Wang Yi and the Chief Advisor of the President of Brazil. In this conversation, Wang Yi said, ‘The use of tariffs to suppress other countries is a violation of the Charter and it weakens the rules of the World Trade Organization (WTO).’

India and China: Strategic rival, still in touch

Although India and China are rival to each other for strategic impact in South Asia, the two countries also communicate with each other on the global stage. According to sources, Prime Minister Narendra Modi can visit China in late August. If this journey takes place, it will be Modi’s first visit to China after 2018. In October 2024, Modi and Chinese President Xi Jinping met in Russia for the last time.

Impact of tariff on India: Export falls, GDP injuries
According to Bloomberg Economics, the total tariffs imposed by the US may decline by up to 60% in India’s exports. This is likely to decline in India’s GDP by about 1%. The Reserve Bank of India has estimated a growth rate of 6.5% in FY 2026, which is much lower than the average of the previous years.

Which areas will be affected?
The new tariff can almost stop the export activity of labor-dominated areas such as gems and jewelery, textiles and shoe industries. This decision is likely to be effective within 21 days.

India expressed strong opposition
The Government of India has termed the US move as unfair and unjust. The government criticized Trump and said that it is wrong to target India in this way, while many other countries are also buying oil from Russia.