In 2025, India encountered significant hurdles in its relations with the United States under President Trump, including steep tariffs on its goods and diplomatic setbacks following the Pahalgam terrorist attack. External Affairs Minister S. Jaishankar had expressed optimism earlier in the year about converging interests. However, events unfolded differently, highlighting contrasts in diplomatic strategies with Pakistan.
The year 2025 saw foreign policy and trade relations overshadow domestic events in India. In January, External Affairs Minister S. Jaishankar stated, “Unlike some, we are not nervous of a Trump-led US administration, there is a convergence of interests.” Yet, just months later, President Trump imposed 25% tariffs on Indian goods, which were later increased to 50%. This move caught India's foreign office off guard, especially in the wake of the Pahalgam terrorist attack.
Pakistan, led by Field Marshal Asim Munir, responded swiftly by securing a lucrative cryptocurrency deal with a Trump family firm. Zachary Witkoff, a Trump business partner, visited Pakistan, and Munir was welcomed as an honored guest by Trump in the US. During his visit, Munir boasted about confronting India, likening Pakistan to a 'dumpster truck' and India to a 'shining Mercedes,' and even nominated Trump for the Nobel Peace Prize for supposedly ending the Indo-Pakistan conflict.
India's diplomatic efforts appeared less agile. Prime Minister Narendra Modi attended a meeting with Trump without notable business accompaniments, unlike Pakistan's Prime Minister Shehbaz Sharif, who presented rare-earth minerals from Balochistan. Modi declined a White House invitation while in Canada, avoiding a joint appearance with Munir. In August, Modi participated in the Tianjin summit, engaging with Russian President Vladimir Putin and Chinese President Xi Jinping, signaling India's alternative partnerships. Trump reacted by calling India's economy 'dead,' despite its strong growth as the world's fourth-largest economy.
Trump's National Security Strategy, released in December, suggested a US retreat from Indo-Pacific engagements, favoring a G-2 arrangement with China. India's exports reached an all-time high in November, but the rupee became Asia's worst-performing currency amid trade uncertainties and investor outflows. The opinion piece underscores the need for nimble diplomacy in a multipolar world, where India faces challenges from its geography, democratic practices, and international perceptions.
