Paper Contents
Abstract
The trade relationship between India and the United States has, recently, transformed into one of the largest bilateral economic relationships in contemporary global trade, with record levels of growth matched only by unprecedented levels of policy discord. This paper spells out the game of strategic tariff as an instrument of economic diplomacy between the two nations and tracks the steep upward spiral of retaliatory capability and mass under the return of Trump administration in 2025. However, the bilateral trade had faced heavy stress under the implementation of reciprocal tariffs which reached 50% by August 2025, resulting in only $170.67 billion worth of bilateral trade as per the latest COMTRADE data (US$79.44 billion in Indian Exports and US$91.23 billion in US imports from India). By analysing these through in-depth sectoral analyses, visualising trade data and assessing policies, this work examines the ways in which tariffs helps in negotiating on economic matters, safeguarding markets and geopolitical positioning. The research shows that, although tariff wars cause a big sectoral disturbance with regard to pharmaceuticals, textiles, and technology services, they also trigger structural negotiations, which in the long run can change the bilateral trade architecture.
Copyright
Copyright © 2025 Dr. Ayush Kumar. This is an open access article distributed under the Creative Commons Attribution License.
