As of September 2025, US–India trade relations are facing renewed strain following the Trump administration’s imposition of a steep tariff on Indian imports. The new tariff stands at 50%, combining reciprocal duties with additional penalties. The US has justified the move as an attempt to correct trade imbalances and push India toward greater market liberalization.

India has strongly criticized the decision, emphasizing that the country retains full strategic autonomy over its energy policy. Officials argue that such measures undermine trust in one of the fastest-growing economic partnerships in the world. The escalation reflects the recurring friction between strategic cooperation and protectionist trade policies.