India's push for self-reliance is not just related to trade or foreign currencies, Prime Minister Narendra Modi said on Friday, as New Delhi struggles with U.S. President Donald Trump's high tariffs imposed on its goods.

The Trump administration has hit India with 50% tariffs. And just after a short military conflict between India and Pakistan, President Trump played host to Pakistan’s army chief of staff at the White House.

India's merchandise trade deficit hit an eight-month high of over $27 billion in July as imports surged faster than exports ahead of U.S. President Donald Trump's tariff announcements on trading partners,

India's exports to the US surged nearly 20% in July, reaching $8.01 billion, while imports rose almost 14% to $4.55 billion. During April-July 2025-26, exports to the US jumped over 21% to $33.53 billion.

President Donald Trump is ratcheting up the pressure on India, calling into question the prospects of a deal with a key US trading partner just days before his tariff deadline.

I could see, if things don’t go well, then sanctions or secondary tariffs could go up,” US treasury secretary Scott Bessent said.