Former US ambassador to the UN Nikki Haley warned that US-India ties have reached a “troubling inflexion point.” She stressed that Washington must not let trade disputes derail the partnership.

In her Newsweek article with Hudson Institute fellow Bill Drexel, she wrote, “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.”

Tariffs Escalate Tensions

Earlier, on July 31, Trump approved a 25 percent tariff on Indian imports. Then, on August 6, he signed another order, adding 25 percent more. He accused India of “directly or indirectly” buying Russian oil.

As a result, tensions between the two countries increased. Haley criticized the move. She admitted, “Trump is right to target India’s massive Russian oil purchases.” However, she warned that treating India like an adversary was “a massive—and preventable—mistake.”

India Versus China

Furthermore, Haley argued that India should not be placed in the same bracket as China. She wrote, “India must be treated like the prized free and democratic partner that it is—not an adversary like China.”

She also highlighted that China, despite being a top buyer of Russian oil, escaped such US sanctions.

India’s Strategic Value

Moreover, Haley underlined India’s role in global supply chains. She explained, “India stands alone in its potential to manufacture at China-like scale for products that can’t be quickly or efficiently produced here, like textiles, inexpensive phones, and solar panels.”

Additionally, she emphasized defence and security ties. She noted that India’s growing military cooperation with the US and allies makes it “a crucial asset to the free world’s security.”

Advice for Moving Forward

Finally, Haley offered advice to both sides. She urged India to take Trump’s concerns on Russian oil seriously and seek solutions with Washington.

At the same time, she pressed Trump to reverse the decline in ties. She wrote, “The sooner the better.” She asked him to hold direct talks with Prime Minister Narendra Modi.

She concluded, “The administration should focus on mending the rift with India and giving the relationship more high-level attention and resources—approaching what the US devotes to China or Israel.”