Donald Trump, long known for defying norms, has taken an unprecedented step that threatens decades of carefully nurtured US-India relations. After more than twenty years of bipartisan efforts to strengthen strategic, economic, and diplomatic ties, Trump&rsquo;s recent tariff policies and business engagements with Pakistan are now dismantling the progress painstakingly achieved.
The move has drawn sharp criticism from senior American officials. Former National Security Adviser John Bolton labelled Trump&rsquo;s 50 percent tariffs on Indian imports &ldquo;disastrous,&rdquo; saying they have &ldquo;shredded decades of efforts&rdquo; by the West to deepen diplomatic and strategic ties with New Delhi. Adding to the chorus, Jake Sullivan, Biden&rsquo;s former NSA, warned that Trump&rsquo;s actions risk pushing India closer to Beijing, undermining US strategic interests in Asia.
&ldquo;Due to Pakistan&rsquo;s willingness to engage in business deals with the Trump family, he has sidelined the India relationship. This is a major strategic setback because a strong US-India partnership serves our core interests,&rdquo; Sullivan said during interviews on multiple platforms. He emphasised that the repercussions extend beyond South Asia: other global powers, including Germany, Japan, and Canada, may question America&rsquo;s reliability as an ally.
Sullivan also highlighted how Trump&rsquo;s trade measures damage the US brand globally. &ldquo;China has moved ahead of the United States in popularity in a whole lot of countries. What was unthinkable a year ago, countries now perceive China as a more responsible global player has happened,&rdquo; he said.
The Trump-Pakistan link is more than diplomatic posturing; it involves significant business interests. In April, Pakistan signed a preliminary agreement with World Liberty Financial, a blockchain and decentralized finance company 60 percent owned by the Trump family. The deal aimed to accelerate blockchain adoption and DeFi innovation in Pakistan. The Trump family is listed in leadership roles: Donald Trump as Chief Crypto Advocate, Eric and Donald Jr as Web3 Ambassadors, and Barron Trump as DeFi Visionary.
Further reinforcing Trump&rsquo;s Pakistan ties, Texas-based hedge fund manager Gentry Thomas Beach&mdash;close to Trump Jr.visited Islamabad in January, meeting Prime Minister Shehbaz Sharif and other senior officials. Beach announced multi-billion-dollar investments via White Bridge Real Estate and signed agreements to explore gold deposits along the Indus River. Following this, Trump publicly declared a US-Pakistan deal to develop the country&rsquo;s &ldquo;massive oil reserves,&rdquo; fueling concerns that personal business interests may have shaped foreign policy.
Experts warn that these moves could weaken Washington&rsquo;s credibility with its partners. Former Secretary of State John Kerry noted, &ldquo;Great nations don&rsquo;t necessarily exhibit greatness by giving people ultimatums all the time without genuine diplomatic effort.&rdquo; Economist Jeffrey Sachs described the tariffs on India as &ldquo;the stupidest tactical move in US foreign policy.&rdquo; Christopher Padilla, a US foreign policy analyst, warned that punitive trade measures could erode trust in America as a reliable partner.
The backdrop to these tensions is the growing strategic competition with China. For years, US policy sought to draw India away from Cold War-era ties with Russia while cautioning against Chinese influence. Trump&rsquo;s unilateral economic measures have inadvertently opened the door for Beijing to strengthen its engagement with New Delhi.
India&rsquo;s leadership, meanwhile, continues to balance relations carefully. During the recent SCO summit in China, Prime Minister Narendra Modi engaged in high-level discussions with Russian President Vladimir Putin and Chinese President Xi Jinping, underscoring India&rsquo;s focus on multilateral cooperation in trade, security, and counterterrorism.
In effect, Trump&rsquo;s tariffs and Pakistan-linked deals risk undermining decades of bipartisan US-India diplomacy, sending a cautionary message to allies and adversaries alike: when economic incentives outweigh strategic coherence, even the strongest partnerships can be destabilized.

Sullivan warn Trump’s trade and Pakistan deals threaten decades of US-India partnership

Trump’s Pakistan Deals Hit US-India Ties

Sullivan warn Trump’s trade and Pakistan deals threaten decades of US-India partnership

September 2, 2025 | 16:19 IST