Background: Trump’s Tariff War With India

• U.S. President Donald Trump, who returned to office in 2025, is using tariffs as a foreign policy weapon.
• India, one of the fastest-growing economies, has been directly targeted:
• Earlier Tariffs: Duties on steel, aluminum, and various manufactured goods.
• New Decision (August 2025): A 25% additional tariff on Indian exports, raising effective tariff levels to nearly 50%.
• Reason cited by U.S.:
• india’s continued purchase of discounted Russian oil despite Western sanctions.
• Washington argues that this indirectly funds Russia’s war in Ukraine.
• Trump’s narrative frames it as a matter of u.S. jobs and national security

Effectively, this is not just trade protectionism but also a geopolitical tool to coerce India to align with
U.S. foreign policy.

Germany’s Response: Standing With India

Diplomatic Remarks in New Delhi (Aug 26, 2025)

• Georg Enzweiler, Germany’s Deputy Envoy to India, directly criticized U.S.tariffs.
• He called them “obstacles to free trade” and emphasized the need to slash duties globally to minimum levels.
• Germany explicitly supported India’s position that tariffs harm global growth and supply chains.

German Foreign Minister’s Position (May 2025)

• In Berlin, German FM Johann Wadephul had earlier declared:
• Trump’s tariffs “help nobody”.
• Germany and the EU remain committed to negotiations with Washington, but not at the cost of free trade.
• Highlighted hope for a EU-India Free Trade Agreement (FTA) by end of 2025.
• Pushed for stronger Indo-Pacific cooperation (code for balancing China’s rise).
• This shows Germany is not just making polite diplomatic noises-it is strategically siding with India against unilateral U.S.trade bullying.

Why Germany Supports India

1. Champion of Free Trade

• Germany is an export-driven economy (auto, machinery, chemicals)
• It depends on open global markets—protectionism directly hurts German interests.
• By defending India, Berlin is defending the principle of rules-based trade under WTO norms

2. Geopolitical Strategy

• India is central to the Indo-Pacific strategy of Europe.
• With U.S.increasingly unpredictable under Trump, Germany seeks to build stronger bilateral and EU-India ties.

3. Economic Opportunity

• EU-India trade deal negotiations are in final stages.
• Germany sees India as a giant consumer market and a manufacturing alternative to China.
• By aligning with India now, Germany strengthens trust ahead of the FTA signing

4. EU Solidarity Against U.S. Tariffs

• Trump has threatened tariffs on European cars and machinery in the past.
• Supporting India is also Germany’s way of creating a coalition against unilateral U.S. actions

India’s Position

• India has firmly rejected U.S. pressure on its oil purchases from Russia.
• FM S. Jaishankar has repeatedly said:
• “If you don’t like our oil purchases, don’t buy from us.”India will put national interest first.
• On trade, India sees Germany’s support as diplomatic validation of its stance India is simultaneously:
• Exploring EU FTA,
• Diversifying exports away from U.S.dependence,
• Strengthening BRICS+ and Global South alliances

What This Means for Global Trade

Winners:

• India: Gains European diplomatic backing; strengthens bargaining power against the U.S
• Germany/EU: Positions itself as a free-trade leader and deepens economic ties with India
• Global South: Sees Germany breaking ranks with U.S.unilateralism.

 

Losers:

• U.S. credibility: Even close allies (Germany) openly reject Trump’s tariffs.
• Global supply chains: Higher tariffs disrupt manufacturing costs and trade flows

 

Bigger Picture

1. Shift From U.S. to EU-India Axis?

• Germany’s stand indicates that India is no longer isolated when the U.s. targets it.
• EU-ndia trade pact could become a counterweight to Trump’s tariff regime.

 

2. Impact on Indo-Pacific Balance

• Both India and Germany have security concerns with China.
• Stronger trade ties double as strategic cooperation in Asia.

 

3. Test of Multilateralism

• This crisis tests WTO and global free trade principles.
• If the world slides into tariff wars, supply chains fragment further.

The German Newspaper Claim

• The Frankfurter Allgemeine Zeitung (FAZ), a respected German daily, reported that:
• US President Donald Trump attempted to call Prime Minister Narendra Modi at least four times in recent weeks.
• Modi refused to take the calls.

FAZ interpreted this as a sign of

• Anger: Modi’s displeasure with Trump’s tariff threats and derogatory remarks.
• Caution: Modi’s awareness of Trump’s negotiation style, where he often pressures counterparts into quick deals.
• FAZ suggested Modi did not want to be cornered into a rushed agreement, citing past examples where Trump leveraged short leader calls into public announcements (e.g, Vietnam).

 

MODI AND TRUMP’S LAST PHONE CALL ON JUNE 17

According to India’s Ministry of External Affairs (MEA), Modi spoke to Trump at the President’s request on June 17. The two were to meet on the sidelines of the G7Summit in Canada, but Trump returned to the US earlier than scheduled.

“After this, at the request of President Trump, both leaders spoke over a phone call today (July 17). The conversation lasted approximately 35 minutes, “the MEA said in the statement released on June 18.

The MEA said Trump expressed his condolences on the call on the April 22 terrorist attack in Pahalgam, and also expressed his support against terrorism.