A Comprehensive Review of India-US Trade Policy Tensions and Their Macroeconomic Consequences

Sachin Singh and Kanchan Srivastava

Published on: 2025-09-08

Abstract

This paper examines the evolving trade relationship between India and the United States, focusing on recent policy tensions and their broader macroeconomic implications. The bilateral trade relationship, valued at approximately $142 billion in goods trade in 2024, has experienced significant strain due to tariff disputes, energy trade disagreements, and shifting geopolitical alignments. This comprehensive review analyses the historical context, current tensions, and potential economic consequences of these developments for both economies and the broader global trade system.