US President Donald Trump's decision to slap harsh tariffs on Indian exports and a "penalty" on purchases of Russian weapons and energy will cost thousands of jobs and could fundamentally change the nature of bilateral ties,

Trump's latest move on tariffs is likely to impact India's exports to the US. This in turn could mean bad news for the Indian economy, which expanded by an estimated 6.5% in 2024–25, the slowest in four years.

The analysis from Yale’s Budget Lab indicates that the structure of Trump’s tariff policy created an uneven distribution of economic consequences. Lower income households typically spend a greater percentage of their income on basic consumer goods—many of which were subject to these tariffs.