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Since Donald Trump became the President of the United States, he has started trade wars with many countries by imposing tariffs and pressuring them to accept his policies. India was also affected by these actions.
In 2025, President Trump and Indian Prime Minister Narendra Modi met at the White House. After this meeting, both countries discussed a possible trade deal, but it was never finalized. Later, President Trump imposed a 50% tariff on India, one of the highest tariffs in the world. This decision impacted India’s trade and also affected India–US relations.
According to recent updates, an audio of US Senator Ted Cruz was leaked online. In this audio, Cruz claimed that US Vice President JD Vance and White House economic adviser Peter Navarro played a major role in blocking the India–US trade deal. He also said that many US senators asked Trump to reconsider his tariff policies, but Trump reacted angrily and refused to change his decision.
This leaked audio clearly suggests that the US government itself did not want to complete the trade deal with India.
Another development involves Canada. Reports said Canada was discussing a trade deal with China, which angered Trump. He warned Canada that he would impose 100% tariffs if it signed any deal with China. Trump also threatened European countries with higher tariffs if they did not support his plan regarding Greenland.
Experts believe these tensions may benefit India. Many countries may turn to India for trade. On 27 January 2026, India and the European Union completed talks on a free trade agreement. Under this deal, the EU will remove tariffs on 99.5% of Indian exports, while India will reduce tariffs on 97.5% of EU goods. This shows that India has strong opportunities ahead.


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