India–U.S. Trade Tensions Escalate: Modiji To Skip UNGA Amid Tariff Storm

Prime Minister Narendra Modi will not travel to New York for the 80th session of the United Nations General Assembly later this month, a move that comes at a time of deepening strain in India–U.S. relations. Instead, External Affairs Minister S. Jaishankar will represent India and deliver the country’s address during the General Debate on September 27. The session, running from September 23 to 29, will bring together global leaders at a moment when international cooperation is being tested by wars, shifting alliances, and economic nationalism.

Prime Minister Narendra Modi is skipping the UN session in New York.(DPR PMO) | Hindustan Times

Tariffs Spark a Diplomatic Rift

The immediate cause of tension lies in U.S. President Donald Trump’s decision to impose a 25 percent tariff on Indian goods earlier this year, later doubled to a punitive 50 percent. The escalation was linked directly to India’s continued purchase of Russian oil, which Washington argues undermines global sanctions. For New Delhi, however, the tariffs are viewed as disproportionate and unfair, threatening nearly $48 billion in exports across sectors like textiles, jewelry, and automobiles. India has called the duties “unjustified and unreasonable,” warning that it will take all necessary steps to safeguard its economic and strategic interests.

India’s Domestic and Global Response

At home, the government has sought to soften the blow by cutting Goods and Services Tax (GST) rates on household products, attempting to shield consumers from rising costs while supporting domestic demand. On the global stage, India has been recalibrating its alliances. Modiji’s recent meetings with Chinese President Xi Jinping and Russian President Vladimir Putin at the Shanghai Cooperation Organisation summit highlighted New Delhi’s willingness to hedge against U.S. unpredictability. This quiet realignment reflects India’s search for stability in an increasingly volatile world order.

Trump’s Strategy and Internal Divisions

In Washington, Trump’s hardline trade policy has sparked debate within his own administration. Senior officials, including Secretary of State Marco Rubio, favored a compromise with India that would reduce tariffs in exchange for a trade deal. Trump, however, rejected any concessions unless India abandoned its Russian oil imports entirely. Meanwhile, U.S. courts have begun to question the legality of Trump’s tariff measures, with a federal appeals court ruling that his actions may have exceeded presidential authority under existing trade laws.

Political Voices and Public Sentiment in India

The tariff dispute has also triggered fiery reactions across India’s political spectrum. Congress MP Manish Tewari declared that India’s resistance to U.S. pressure is about dignity, famously stating that Indians would “eat one roti less” rather than submit to Trump’s conditions. On the other hand, Delhi Chief Minister Arvind Kejriwal demanded stronger retaliation, urging the Modi government to slap 100 percent tariffs on American imports and criticizing the waiver of duties on U.S. cotton. Modiji himself has responded diplomatically, thanking Trump for a recent gesture of goodwill on social media, signaling that he still hopes for dialogue despite the bitterness.

Strategic Stakes in the Indo-Pacific

Beyond the trade dispute, the crisis raises larger questions about the future of India–U.S. relations. For years, both nations have described each other as indispensable partners in maintaining stability in the Indo-Pacific. Analysts at the Council on Foreign Relations view Trump’s tariffs as a bargaining chip to pressure India into a broader trade agreement. Yet experts at Brookings warn that such tactics could destabilize a partnership vital to countering China’s growing influence in the region. If left unresolved, the rift could push India further toward Russia and China, reshaping the balance of power in Asia.

The MGMM Outlook

India–U.S. trade tensions have reached a new high as Prime Minister Narendra Modi decided not to attend the UN General Assembly, leaving External Affairs Minister S. Jaishankar to represent India. This decision reflects not only the immediate rift over tariffs but also India’s strategic balancing in a shifting global order. The U.S. under President Trump has imposed steep tariffs—first 25 percent and later 50 percent—on Indian exports, citing New Delhi’s continued purchase of Russian oil. India, however, views these measures as excessive and unjustified, threatening billions in trade across textiles, jewelry, and automobiles. To cushion domestic impact, the Modi government has reduced GST rates on essential products while recalibrating global alliances, engaging with Russia and China to safeguard India’s long-term economic and strategic interests.

For India, this episode is about more than trade—it is about national dignity, sovereignty, and resilience. Political voices across the spectrum have underscored the importance of standing firm against U.S. pressure, even if it means economic sacrifice. While America’s hardline stance risks weakening trust, India continues to approach the situation with a mix of firmness and diplomacy, signaling openness to dialogue but unwillingness to compromise its core interests. The episode highlights India’s evolving role in the Indo-Pacific, where maintaining independence in policy decisions while building balanced global partnerships remains central to New Delhi’s vision of its future.

(Sources: Hindustan Times, NDTV, India Today)