Nikki Haley Warns: US Risks a Strategic Blunder by Straining Economic Ties with India Amid Rising Chinese Threat

 

Washington – Former US Ambassador to the United Nations, Nimarata Nikki Randhawa Haley, has issued a stern warning to Washington, cautioning that the ongoing trade frictions with India could become one of the most serious missteps in US foreign policy at a time when unity against China is critical.

In a sharply worded op-ed published in Newsweek on Wednesday, Haley, a senior Republican leader and one-time rival of Donald Trump in the 2024 presidential primaries, described the US-India partnership as a “no-brainer” and said that allowing current tensions to escalate would be a “massive – and preventable – mistake.”

Haley argued that an economic rupture between the two largest democracies would serve no one but Beijing, which would eagerly exploit the rift to drive India and the United States apart.

“Decades of friendship and goodwill between our nations provide a strong foundation to resolve differences.

To squander that by letting a trade spat balloon into an enduring rupture is not just shortsighted – it is strategically reckless,” she said.

The former envoy emphasized that Washington must not lose sight of the bigger picture: India’s central role in balancing China’s rising assertiveness across Asia and beyond.

“It would serve America’s national interest to help India stand strong against its increasingly aggressive northern neighbor, both economically and militarily.

To risk alienating India over tariffs is a miscalculation that weakens our long-term strategic position,” Haley wrote.

She stressed that the immediate focus of US foreign policy should be to reverse the “downward spiral” in relations, calling for urgent, direct talks between US President Donald Trump and Indian Prime Minister Narendra Modi.

“The sooner the better,” she added, insisting that high-level diplomacy is essential to prevent further damage.

Haley also pointed out that India must take America’s concerns about Russian oil imports seriously, while at the same time criticizing the Trump administration’s punitive measures.

India now faces 25% tariffs both on its oil purchases from Russia and on the export of its goods to the United States.

Instead of punitive trade actions, she said, Washington should invest more attention, resources, and political will into nurturing the partnership with India, on par with the energy it devotes to its ties with China or Israel.

In her view, difficult conversations about trade, energy, and security are not a sign of hostility, but rather of a maturing partnership.

“Challenging issues should be resolved through dialogue, not punishment. If we allow tariffs and disputes to dominate, we risk losing sight of our shared strategic goal – confronting China’s global ambitions,” she wrote.

Haley, who, after losing to Trump in the Republican primaries, eventually endorsed his re-election bid while still criticizing some of his policies, reiterated that both nations must elevate the relationship above transactional disputes.

“To face China, the United States must have a friend in India. Any policy that pushes New Delhi away is not only unwise – it is dangerous.”

By framing the escalating trade dispute as a self-inflicted wound, Haley made it clear that the US government’s approach risks undermining a vital alliance at precisely the moment it is most needed.

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