President Trump's administration imposed a 25% tariff on Indian goods, escalating trade tensions. This follows failed trade talks and impacts various Indian sectors, potentially reducing exports to the US significantly and harming India's GDP growth. The move is seen as partly aimed at pressuring Russia. The strained relationship between Trump and Modi, coupled with India's resistance to opening its agricultural sector, contributed to the impasse. Experts predict severe economic consequences for India, with job losses and decreased exports.

Prepared by Rachel Morgan and reviewed by editorial team.