India-US Tariff War / Will tension between India and US reduce? PM Modi and Trump may meet next month

India-US Tariff War: Tensions have increased in trade relations between India and the US in recent months, the main reason for which is US President Donald Trump's decision to impose a tariff of up to 50 percent on Indian imports. This decision has not only increased diplomatic tensions between the two countries, but it is also expected to have a profound impact on Indian businessmen. Amidst this tension, an important development is coming out that Prime Minister Narendra Modi and President Trump may meet during the United Nations General Assembly (UNGA) in September 2025. This meeting can be an opportunity to give a new direction to the relations between the two countries.

Background of tariff dispute

The US recently imposed a tariff of 25 percent on India, which was later increased by an additional 25 percent to a total of 50 percent due to displeasure over India's oil imports from Russia. This tariff has been partially implemented from August 7, and the rest will be effective from August 27. The US says that India's purchase of oil from Russia supports Moscow's war efforts, which is a matter of concern for the US in the context of the Ukraine war.

India has strongly opposed this tariff, calling it "unfair and irrational". The Indian Foreign Ministry issued a statement saying, "Targeting India is unfair. Like any major economy, India will take all necessary measures to protect its national interests and economic security." India has also argued that US companies themselves are buying uranium, chemicals and fertilizers from Russia, which India has termed as a "hypocritical" policy of the US.

United Nations General Assembly and possible meeting

The 80th session of the United Nations General Assembly will begin in New York on 9 September 2025, with the high-level general debate running from 23 to 29 September. During this, Prime Minister Narendra Modi may address the UNGA on September 26, while President Trump will deliver his speech on September 23. According to sources, a bilateral meeting is likely between PM Modi and Trump during this visit, the main objective of which will be to resolve the trade dispute and reach a consensus on tariffs.

This meeting is also important because the talks between the two countries regarding the trade agreement have been stalled for months. The agreement has not been reached so far due to India's reluctance, especially in the agriculture and dairy sectors. Diplomatic experts believe that this meeting can provide an opportunity to strengthen personal relations between the two leaders and reduce tensions.

Previous meeting and future prospects

Earlier, in February 2025, PM Modi visited the White House, where the two leaders announced the start of negotiations on the first phase of a mutually beneficial, multi-sectoral bilateral trade agreement by 2025. At that time, personal warmth was seen between the two leaders, but Trump's statements on tariffs and trade issues in his second term have created tension in the relationship.

Many experts believe that if this meeting is successful, it can not only bring progress towards the trade agreement, but can also increase cooperation between India and America on geopolitical issues like Russia-Ukraine war. India is also eyeing the meeting between Trump and Russian President Vladimir Putin on August 15, which could be crucial to ending the Ukraine war.

India's strategy and challenges

For India, the visit is not just an opportunity to ease trade tensions, but also to formulate a diplomatic strategy in line with its energy and trade interests. India has made it clear that it will not compromise on its farmers and economic interests. At the same time, India has not ruled out the possibility of retaliation, calling the US tariffs unilateral and irresponsible.

In addition, US criticism of India's oil purchases from Russia has further escalated diplomatic tensions between the two countries. India argues that its energy needs and economic security are paramount, and it will protect its interests under global trade rules.