Explore whether Donald Trump’s “America First” policies truly aim to wreck India’s economy or just seek fairer trade. Breakdown of tariffs, jobs, and energy impacts.

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People online and in the news sometimes say Donald Trump wants to wreck India’s economy.

However, is that true?

Not really.

It is more about Trump putting America first.

He wants better deals for the US, which might make things tougher for India, but he does not intend to destroy it.

As of July 2025, Trump is back as president.

India’s economy is still growing, at about 6.5% this fiscal year.

Let us look at the main points in simple terms.

Why The Talk About Trump Vs. India?

Trump thinks India charges too much tax (called tariffs) on US goods, like up to 150% on bikes and drinks.

He calls India the “tariff king.” The US buys more from India than it sells, creating a $46 billion gap in 2024.

Trump wants to fix that by making trade fairer.

This means putting taxes on Indian goods too.

It is like saying, “If you tax us, we will tax you back.”

Experts say this helps US jobs, but it can hurt others as a side effect.

Trump has delayed these taxes before to talk and make deals.

Main Ways Trump’s Plans Could Affect India

Trump’s ideas focus on taxes, jobs, energy, and people moving to the US. India’s economy is worth $3.5 trillion.

Exports are only 20%, so most growth comes from inside India.

That makes it strong against problems.

1. Taxes On Goods (Tariffs)

Trump plans 26% taxes on Indian items like steel, clothes, and medicines. This might start in August 2025 if no deal happens.
What happens: India sells about $87 billion to the US. This could cut sales by 10-20%, hurting factories in chemicals and cars. Prices in India might go up a bit.
Good news: India and the US are talking. India offered to lower its taxes a lot.

2. Jobs And Tech Work

Trump pushes companies like Apple and Google to make things in the US, not India. He threatens extra taxes if they do not.
What Happens: This slows India’s “Make in India” plan. It could affect 100,000 jobs in phones and computers. Tech services (a big part of India’s sales) might lose out because of fewer US work visas (H-1B).
However, due to Trump’s higher taxes, India could gain if companies leave China.

3. Energy And World Politics

Trump says India should not buy cheap oil from Russia (India bought a lot in 2024-25, worth about $53 billion). He thinks it helps Russia’s war in Ukraine.
He also brags about stopping a fight between India and Pakistan using trade threats.
What happens: Stopping Russian oil could raise fuel prices in India. The fight story is mostly Trump talking big.
India’s move: Keep buying the oil for cheap energy.

4. People And Money Sent Home

Trump wants stricter rules on work visas and to send back Indians without papers. He might tax the money sent to India.
What happens: India gets about $129 billion from people abroad. This could drop, hurting families. Tech jobs (5 million people) rely on US work.
Strength: India can find other countries to sell to.

Overall, these could slow some parts of India’s growth but not stop it. India has had low price rises (around 2-3% recently) and is building roads and other infrastructure.

How India Is Handling It

India is smart about this:

Talking to the US for a deal. Trade could double to $500 billion by 2030.
Making new friends: Signed a big trade deal with the UK on July 24, 2025, expected to add up to $34 billion in trade annually.
Building at home: Focusing on its strengths, like young workers and tech.
Ignoring some talk: Keeps buying Russian oil.

Some people like Trump’s fair trade idea, while others say it hurts everyone.

However, India looks set to keep growing.