US-India Relations Shift to Transactional Under Trump

By the Editorial Team · Friday, July 10, 2026

The US-India relationship, once steadily strengthening in strategic and economic areas, has experienced growing strains due to US trade restrictions, immigration policies, and a softer US stance on Pakistan during the Trump administration. This shift has led to reduced Indian student arrivals and increased public caution in India, signaling that future US administrations must address security and immigration concerns to rebuild trust and partnership momentum.

For much of the early 21st century, the relationship between the United States and India appeared to be on a steady trajectory toward closer strategic and economic ties. After overcoming Cold War-era suspicions, the two democracies established cooperation in areas including civilian nuclear energy, defense, technology, intelligence sharing, and trade. Washington actively supported India’s emergence as a regional counterbalance to China and welcomed a growing wave of Indian technology professionals and students.

However, this narrative of deepening partnership began to shift during Donald Trump’s second presidential term. The US implemented tariffs and trade restrictions targeting Indian goods, adopted immigration policies that affected Indian students and professionals, and notably took a softer stance toward Pakistan, which is viewed by India as a longstanding adversary. These developments contributed to growing apprehension within India, both among policymakers and the public.

“While the Indian government still regards the United States as a vital partner, public sentiment has grown more cautious,” said Michael Kugelman, a South Asia analyst based in the US. Many Indians have long seen America as both a strategic ally and a destination for educational and professional advancement. However, tightened visa rules, increased immigration enforcement, and reports of heightened racism have dampened enthusiasm for studying or working in the US.

Last year, the number of Indian students arriving in the United States fell by approximately 44%, reflecting these concerns. Adyaa Khanna, a lawyer based in Delhi, noted that many young Indians now question the value of pursuing education in the US when job opportunities, personal safety, and prospects for the future appear uncertain.

Experts contend that if the US-India relationship is to regain momentum, the incoming US administration will need to reaffirm India’s importance as a strategic partner. Addressing specific issues—such as India’s security concerns regarding Pakistan and China, as well as immigration policies affecting Indian nationals—will be critical to rebuilding trust. Kugelman emphasized that “rebuilding trust will take time,” highlighting the challenges that lie ahead in restoring the bilateral partnership to its previous trajectory.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.