Former U.S. ambassador to the United Nations Nikki Haley has cautioned that the Trump administration’s relations with India are at a “troubling inflexion point,” warning that escalating trade tensions risk undermining a partnership vital to countering China.
In an opinion piece co-authored with Bill Drexel, a fellow at the Hudson Institute, for Newsweek, Haley argued that strengthening ties with New Delhi is central to Washington’s Asia strategy. She warned that “scuttling 25 years of momentum with the only country that can serve as a counterweight to Chinese dominance in Asia would be a strategic disaster.”
The warning comes after President Donald Trump signed an executive order on August 6, imposing an additional 25% tariff on imports from India in response to New Delhi’s continued oil purchases from Russia. This followed a separate 25% tariff on Indian goods approved on July 31, further straining economic relations.
Key Takeaways from Haley’s Article
1. Tariff Tensions
Haley criticised the Trump administration’s tariff measures as counterproductive. While she acknowledged Trump was “right to target India’s massive Russian oil purchases,” she cautioned that treating India like an adversary would be a “massive—and preventable—mistake.”
2. India vs. China
Haley stressed that India must not be equated with Beijing, arguing: “India must be treated like the prized free and democratic partner that it is—not an adversary like China.” She pointed out that China, despite being a leading importer of Russian oil, has escaped comparable U.S. sanctions.
3. Strategic Importance
Highlighting India’s manufacturing potential, Haley wrote that India “stands alone in its ability to produce at China-like scale” for industries such as textiles, low-cost smartphones, and solar panels—sectors critical to diversifying global supply chains.
4. Defence and Security Cooperation
She underlined India’s growing importance in global security, noting its expanding defence partnerships with the U.S. and allied nations. Haley described India as “a crucial asset to the free world’s security.”
5. Advice to India and the Trump Administration
Haley urged India to take Trump’s concerns on Russian oil seriously and work toward a compromise. At the same time, she called on Trump to “reverse the downward spiral” in relations and hold direct talks with Prime Minister Narendra Modi. “The sooner the better,” she wrote, adding that Washington should devote to India a level of strategic attention comparable to what it dedicates to China or Israel.
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