Trump 2.0 Impact on India: Trade, Visas & Policy Changes

Donald Trump’s return to power in January 2025 brought back his signature “America First” approach—with sharper edges. From immigration crackdowns to renewed trade wars, his second term has reignited old tensions and created new ones. For India, one major flashpoint has been Trump’s aggressive tariff policies, which have hit key sectors like pharmaceuticals, steel, and digital services.

1. Tariffs on Indian Goods Spark Trade Row

In June 2025, Trump imposed new tariffs on Indian steel, generic drugs, and IT services, citing “unfair trade advantages”. India retaliated with duties on American agricultural exports. Talks are ongoing, but tensions are high.

Why Was India Targeted?

The Trump administration cited several reasons for the tariffs on India:

Trade Deficit: Trump claimed the U.S. had a “chronic trade deficit” with India and accused it of “taking advantage” of U.S. markets.
Digital Services Tax: India’s equalisation levy on U.S. tech giants like Google and Amazon was labelled “discriminatory.”
Pharma Pricing Disputes: India’s price controls on medical devices and generic drugs hurt U.S. pharmaceutical companies.
Market Access Barriers: The U.S. pushed back on what it saw as protectionist measures by India, especially in agriculture, e-commerce, and data localization.

Geopolitical Fallout

While the U.S. and India remain strategic partners (especially on defense and Indo-Pacific security), the tariffs have added strain to the relationship. The U.S.-India Trade Policy Forum, which had resumed under Biden, has stalled again under Trump.

Efforts to de-escalate are underway, with backchannel talks between U.S. Trade Representative officials and India’s Ministry of Commerce.

2. Immigration Raids and Green Card Freeze

Trump ordered large-scale ICE raids across U.S. cities, and froze new H-1B and green card processing for several countries, including India. The move has left thousands of Indian professionals and families in limbo.

3. Exit from Paris Agreement

Trump once again pulled the U.S. out of the Paris Climate Accord, claiming it was a “bad deal for America.”

4. New Travel Ban Includes South Asia

A controversial executive order expanded the travel ban to include Pakistan. While India wasn’t directly affected, the regional move raised concerns over future policy targeting.

5. Truth 2.0 and Global Misinformation

Trump’s new social media platform, Truth 2.0, has amplified his voice across borders. His posts about China, India, and the “global tech cartel” have stirred online outrage.

6. Supreme Court Tilt: Ultra-Conservative Majority

By mid-2025, Trump had reshaped the Supreme Court with a 7–2 conservative bench. Key rulings are expected on issues like immigration, data privacy, and religious freedom—some of which could impact Indian tech firms in the U.S.

7. End of Pandemic Preparedness

Trump dismantled U.S. pandemic response programs, even as Southeast Asia faces new outbreaks. India, which has been coordinating regionally on health response, has criticized the move as irresponsible.

8. Freeze on Student Visas

Indian students were hit hard by visa freezes and higher restrictions on Optional Practical Training (OPT). Universities across the U.S. have reported a sharp drop in Indian enrolment.