Nikki Haley cautions Trump amid 50 pc tariff row, says get back India-US ties on track

Washington, Aug 21 (IANS/WISHAVWARTA) As tensions increase between Washington and New Delhi over US tariffs related to India’s purchase of Russian oil, former US Ambassador to the United Nations Nikki Haley has issued a firm warning. She believes the bilateral relationship is at serious risk and called for a course correction, emphasising that strengthening ties with India is crucial if the US aims to counter China’s growing global influence.

In an opinion piece published in Newsweek on Wednesday, Haley stressed that India should not be treated in the same category as China. She cautioned the Trump administration against allowing disputes –such as tariff conflicts or the US role in India-Pakistan peace talks — to fracture the bond between two of the world’s largest democracies.

The past few weeks have seen heightened strain in India-US relations. The Trump administration recently imposed a 25 per cent tariff on India in response to its ongoing oil trade with Russia — this is in addition to existing duties on Indian imports. This move follows a period of growing disagreement, including India’s refusal to recognise a US role in mediating ceasefire efforts between India and Pakistan.

“To achieve the Trump administration’s foreign policy goals-outcompeting China and achieving peace through strength-few objectives are more critical than getting US-India relations back on track,” she wrote.

Nikki Haley criticised the Trump administration’s 25 per cent tariff threat on Indian goods and Russian oil imports, calling it counterproductive.

“Trump is right to target India’s massive Russian oil purchases,” she noted, but warned that treating India like an adversary instead of a partner would be “a massive – and preventable – mistake”.

Though Haley has endorsed Trump for the 2024 election, she has continued to voice concerns when necessary.

She noted that “India must be treated like the prized free and democratic partner that it is, not an adversary like China, which has thus far avoided sanctions for its Russian oil purchases, despite being one of Moscow’s largest customers.”

“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,” she warned.

She highlighted India’s role in diversifying global supply chains away from China, which is crucial for US economic resilience in the short term.

“While the Trump administration works to bring manufacturing back to our shores, India stands alone in its potential to manufacture at a China-like scale for products that can’t be quickly or efficiently produced here, like textiles, inexpensive phones, and solar panels,” she wrote.

Haley also underlined India’s value in the defence sphere. Its deepening military ties with US allies, such as Israel, make India a key customer for American defence exports and a strategic asset for global security.

India’s influence in the Middle East was also noted as significant. As the US looks to reduce its military presence and expenditure in the region, India’s growing involvement could help stabilise the area. Additionally, India’s geographic position — critical to China’s trade and energy routes — adds to its long-term strategic importance, especially in the event of conflict.

“In the longer term, India’s significance is even more profound. Home to more than a sixth of humanity, India surpassed China as the world’s most populous country in 2023, with a young workforce that contrasts with China’s ageing one,” she wrote in Newsweek.

With the fastest-growing major economy, India’s ascent is shaping up to be the most geopolitically significant shift since China’s rise. Haley asserted that this growth presents one of the biggest challenges to China’s attempt to reshape the global order.

“Simply put, China’s ambitions will have to shrink as India’s power grows. Yet, unlike Communist-controlled China, the rise of a democratic India does not threaten the free world,” she added.

Earlier this month, on August 6, Haley also criticised the US for treating India unfairly while giving leniency to China. She argued that Washington should not risk damaging its relationship with a dependable ally.

“India shouldn’t be buying oil from Russia, but China — our adversary and the leading buyer of both Russian and Iranian oil — received a 90-day break from tariffs,” Haley posted on X.

“Why penalise India while giving China a free pass?”

Haley served as the US ambassador to the UN from January 2017 to December 2018 during Trump’s first term, becoming the first Indian American to hold a cabinet-level position in the US government.

In 2023, she launched a bid for the presidency but ended her campaign in March 2024. Her latest remarks come shortly after Trump criticised India as an unreliable trade partner and announced plans to impose significantly higher tariffs within 24 hours, citing India’s Russian oil purchases as support for the “war machine.”

However, on August 19, the Centre had said almost $50 billion worth of Indian goods will be affected once the 50 per cent tariff comes into effect on August 27.

In a written reply to the Lok Sabha regarding a question on the impact of Donald Trump’s tariffs, Minister of State for Commerce and Industry Jitin Prasada said that around $48.2 billion of India’s merchandise exports will be subject to the additional tariffs.

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