Trump’s 50% Tariff on India: Bolton Slams ‘Enormous Mistake’ in US-India Trade Relations
Trump’s 50% Tariff on India has sparked political backlash, with former US National Security Advisor John Bolton warning that the move could severely damage the strategic partnership between Washington and New Delhi.
In an interview with CNN, Bolton criticized the decision as “an enormous mistake,” suggesting it may unintentionally deepen India’s ties with Russia and China instead of strengthening US relations.
Bolton Warns Against Tariff Backfire
Bolton, who served under President Donald Trump, argued that the tariffs originally aimed at punishing India for continuing oil imports from Russia could end up undermining decades of diplomatic progress.
“Trump’s tariffs against India are intended to hurt Russia, but they could push India closer to Russia and China to oppose these tariffs,” Bolton said.
He also pointed to what he views as Trump’s bias towards Beijing, noting that the White House appears to treat China more leniently on tariffs than India.
High Tariffs and Their Economic Implications
Donald Trump’s policy includes:
- An additional 25% tariff on Indian goods (on top of an existing 25%), taking the total to 50%.
- A penalty for India’s oil imports from Russia.
With these measures, India now faces one of the highest tariff rates among all US trading partners a position it shares with only a few nations.
Economists warn that such aggressive tariff hikes could:
- Hurt Indian export competitiveness in the US market.
- Increase tensions in already delicate trade negotiations.
- Complicate India’s balancing act between Western and Eastern trade blocs.
India’s Response: PM Modi Stands Firm
Prime Minister Narendra Modi made it clear during the MS Swaminathan Centenary International Conference that India will not compromise on the interests of farmers, fishermen, and dairy farmers.
This statement signals that New Delhi is prepared for a prolonged trade standoff if Washington does not reconsider its position.
Strategic Risks: Shifting Alliances
Bolton’s core argument is that Trump’s 50% Tariff on India may erode trust in US leadership within Asia. He wrote earlier that levying tariffs on both allies and adversaries has already damaged America’s credibility:
“The US, by levying tariffs on friend and foe alike, has likely suffered a considerable loss of trust and confidence, built up over decades of effort, in exchange for minimal economic gains if any and the risk of formidable losses.”
If India turns further towards Russia and China for trade partnerships, the US could lose a key counterbalance to Chinese influence in the Indo-Pacific region.
Why This Tariff Is Different
While tariffs have been used in past trade disputes, this 50% levy is unique in its:
- Dual target nature punishing both India and indirectly Russia.
- Potential to disrupt strategic military and technological cooperation between India and the US.
- Timing, as it comes amid shifting global alliances and ongoing energy crises.