From ‘Howdy Modi’ to ‘Dead Economy’: 5 Explosive Reasons Why Modi-Trump Ties Collapsed

New Delhi (The Uttam Hindu): There was a time when India-US relations were at their peak, with events like “Howdy Modi” in Texas and “Namaste Trump” in Gujarat showcasing the personal chemistry between PM Narendra Modi and former US President Donald Trump. But in Trump's second term, that warmth has rapidly faded.

Here's a look at the 5 major reasons behind the souring of ties:

1. The Ceasefire Credit & Nobel Ambitions

According to The New York Times, on June 17, while returning from the G7 Summit, Trump spoke with PM Modi and claimed credit for brokering a ceasefire between India and Pakistan. Despite Modi clearly denying any US involvement, Trump insisted on his narrative. He also hinted that Pakistan was considering nominating him for the Nobel Peace Prize — and subtly suggested that India should do the same. Modi’s refusal reportedly offended Trump.

2. G7 Meeting Snub & Kashmir Stand

At the G7 Summit in Canada, no formal meeting took place between the two leaders. Later, Trump invited Modi to stop over in the US en route to India, but Modi declined, citing a prior commitment in Croatia. Reports suggest Modi suspected Trump might arrange a meeting with Pakistan Army Chief Asim Munir, who was in Washington at the time. Modi also reiterated India’s long-standing policy — no third-party mediation on Kashmir.

3. ‘Dead Economy’ Jibe & 50% Tariffs

Following the tense phone call, Trump publicly referred to India as a “dead economy” and called its trade policies “pathetic.” Shortly after, he imposed a 50% tariff on Indian goods — a move that sharply escalated tensions. Since then, no direct communication has taken place between the two leaders.

4. Agricultural Trade Dispute

The US had been pressuring India to open its markets for American dairy and agricultural products. India, prioritizing its local farmers, denied these demands. This led to the cancellation of bilateral trade talks scheduled for August.

5. Russian Oil and Penalty Tariffs

One of the most contentious issues was India’s continued purchase of discounted oil from Russia amid the ongoing Ukraine war. The US sees this as aiding Russia’s war efforts. As a result, 25% of the 50% tariff was added as a penalty specifically linked to India’s oil imports from Moscow. India has defended its stance, calling it a matter of national interest.