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Abstract

India’s foreign policy in the era of trade conflicts emphasizes strategic autonomy through hedging and balancing relations with major powers like the US, China, and Russia amid escalating tariffs and supply chain shifts. This approach allows India to navigate US-imposed tariffs (e.g., 50% on Indian goods in 2025) while maintaining economic ties with China and energy imports from Russia. India’s foreign policy and strategic diplomacy in the era of trade conflicts reflect a pragmatic evolution from Nehruvian non-alignment to multialignment, prioritizing strategic autonomy amid US-China rivalry and escalating tariffs. Since 2018, global trade wars—intensified by US reciprocal tariffs under Trump’s second term—have tested India’s balancing act, with 50% duties on Indian exports in 2025 linked to Russian oil imports, threatening $200B bilateral trade while exposing supply chain vulnerabilities. India hedges by deepening US defense ties (e.g., Quad, iCET) for tech/security gains, yet resists full alignment to preserve China/Russia engagement. Post -Galwan 2020, app bans and FDI curbs countered China, but $100B+ trade persists, bolstered by 2025 SCO aviation restarts. Russian energy imports defy US sanctions, ensuring affordability for 1.4B citizens, while EU/Middle East diversification mitigates tariff shocks. Facing US 25-50% tariffs on textiles/jewelry/shrimp (2025-2026), India paused some defense deals but denied halts, emphasizing sovereignty.