The Intelligence from The Economist Chill baby chill: Modi-Trump relations dip
Aug 28, 2025
Kira Huyu, Asia correspondent at The Economist, discusses the latest diplomatic rift between India and the U.S., following Trump's 50% tariff on Indian imports. She explores how Modi might respond and the broader implications for India's foreign relations, particularly with China. The conversation also touches on Palantir's potential overvaluation and the surprising resurgence of analog media, highlighting a nostalgic shift away from digital dominance in music and photography.
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Diplomatic Damage From Tariff Shock
- Donald Trump's new 50% tariff on Indian imports has ruptured two decades of careful US‑India diplomacy and humiliated Narendra Modi.
- Kira Huyu warns the tariff move forces India to hedge more with China and pursue internal balancing to strengthen itself.
India's Strategic Autonomy Revisited
- India long pursued strategic autonomy but shifted toward the US to counter China over two decades.
- With Trump's recent moves on Pakistan and tariffs, India now needs to accelerate economic and defence self‑strengthening.
Bromance That Wasn't As Warm
- Kira Huyu recounts Trump offending India by credit‑claiming a ceasefire and treating both sides as equally culpable in a Pakistan skirmish.
- She cites Delhi insiders who felt disrespected during Modi's White House visit months earlier.