Overview
- Trump’s 50% tariff on Indian goods, including added penalties tied to Russian oil, still defines the relationship with no sign of a rollback, recent reports say.
- New Delhi has moved to diversify trade and security partners by courting Europe, expanding links with Russia and other markets, and recalibrating ties with China while keeping U.S. channels open.
- India reduced crude purchases from Russia by year’s end and increased American energy imports in an effort to ease pressure without conceding on sensitive trade demands.
- The rupture has disrupted the Quad’s calendar and complicated neighbourhood diplomacy, as unrest in Bangladesh and political upheaval in Nepal spilled into India’s missions and regional ties.
- After a four-day India–Pakistan clash in May and Trump’s public claims of brokering a ceasefire, strategists say 2026 will require avoiding new crises and mobilizing pro‑India constituencies in Washington.