Nikki Haley, former US ambassador to the United Nations, on Friday stressed on the importance of India-US relationship, warning that alienating New Delhi at a time of rising Chinese assertiveness would be a 'strategic disaster.'
Her remarks came in the wake of President Donald Trump's decision to impose a 50% tariff on Indian goods, a move that has unsettled bilateral trade ties. Writing in an opinion piece co-authored with Bill Drexel of the Hudson Institute, Haley argued that “partnership between the US and India to counter China should be a no-brainer.”
“Partnership between the US and India to counter China should be a no-brainer. India and China are unfriendly neighbors that have conflicting economic interests and ongoing territorial disputes, including a lethal skirmish over contested borders as recently as 2020,” she wrote.
“Unlike Communist China, the rise of a democratic India does not threaten the free world,” she said, adding, “It would serve America’s interests to help India stand up to China.”
Also read: Nikki Haley says US must have a friend in India, explains why
{{/usCountry}}Also read: Nikki Haley says US must have a friend in India, explains why
{{/usCountry}}Haley drew on history to underline the depth of the relationship, recalling President Ronald Reagan’s 1982 state dinner for Indian Prime Minister Indira Gandhi, where Reagan toasted the friendship of “two proud, free peoples.” She noted, however, that the relationship has now reached a “troubling inflection point.”
While acknowledging India's Russian oil purchases and its protectionist trade practices, Haley cautioned against treating New Delhi as an adversary. “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,” she wrote.
India's strategic importance
Haley emphasized India’s strategic role in US foreign policy:
- Supply chains: “In the short term, India is essential in helping the United States move its critical supply chains away from China,” she said, citing India’s ability to manufacture at scale.
- Defence cooperation: She highlighted India’s expanding military ties with the US, Israel, and other allies, making it a “crucial asset to the free world’s security.”
- Geostrategic location: India’s position at the center of China’s trade and energy flows, Haley argued, could complicate Beijing’s options in the event of a conflict.
Looking at the long term, Haley pointed to India’s demographic advantage, noting that it overtook China as the world’s most populous nation in 2023, with a young workforce that contrasts with China’s ageing one. “Simply put, China’s ambitions will have to shrink as India’s power grows,” she said.
Haley also stressed India’s fraught ties with Beijing. “India and China are unfriendly neighbors that have conflicting economic interests and ongoing territorial disputes, including a lethal skirmish over contested borders as recently as 2020,” she said. “It would serve America’s interests to help India stand up to its increasingly aggressive northern neighbour… the sooner the better.”
Calling for high-level engagement, Nikki Haley said the immediate priority should be direct talks between President Trump and Prime Minister Narendra Modi to “reverse the downward spiral.” She warned against letting trade disputes overshadow strategic imperatives.
“The United States should not lose sight of what matters most: our shared goals,” she wrote. “To face China, the United States must have a friend in India.”
Despite turbulence, Haley and Drexel concluded that the decades-long goodwill between the world’s two largest democracies provides a strong basis to overcome current frictions. “Navigating challenging issues like trade disagreements and Russian oil imports demand hard dialogue,” they wrote, “but difficult conversations are often the sign of a deepening partnership.”
Why Trump targetted India
Trump announced the 50% tariff on Indian goods earlier this week, citing New Delhi’s continued purchases of discounted Russian crude and its high tariff barriers that Washington has long criticised as unfair to American businesses. The decision marked one of the sharpest escalations in trade tensions between the two countries in recent years, reversing decades of efforts to liberalise bilateral commerce.
According to US officials, the move is aimed at pressuring India to curb its energy imports from Russia and open its markets wider to American exports. But the decision has also sparked concern among policymakers and business groups who warn that such steep duties risk undermining a critical partnership at a time when Washington is seeking allies to balance China’s growing influence in Asia.
India's response to tariffs
Prime Minister Narendra Modi has decried the US tariffs as “unjustified,” framing them as an attack on India’s strategic autonomy and reiterating his push for self-reliance under the Atmanirbhar Bharat framework.
External Affairs Minister S Jaishankar also recently delivered a pointed rebuke to US criticism of India’s Russian oil imports, saying, “If you don’t like it, don’t buy it,” while underscoring that New Delhi’s decisions are guided by national interests, particularly those of farmers and small producers.
In another strong move, India on Saturday announced a temporary suspension of all postal services to the United States from August 25, citing new US customs regulations that take effect later this month.
In a statement, the Department of Posts said that beginning August 29, all postal items sent to the US - regardless of their value - will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. However, gift consignments worth up to $100 will continue to be exempt from duties, it added.