Trump's first 100 days: Tariffs, budget cuts, deportations, and extradition – 5 bold US moves impacting India

Trump's first 100 days: Prime Minister Narendra Modi was among the first world leaders to visit the White House in the second Donald Trump administration in February. US Vice President JD Vance’s recent India trip further built on the momentum from the Modi-Trump meeting.

Vance, who was primarily on a private trip to India with his Indian-origin wife Usha Vance, said on April 22 that the United States did not intend to preach things but work with India as a partner and looked forward to strengthening the relationship.

Vance said that earlier US governments saw India as a source of low-cost labour. “Now I believe that our nations have much to offer to one another, and that's why we come to you as partners, looking to strengthen our relationship,” Vance said at an event in Rajasthan's Jaipur on April 22. Vance met PM Modi a day before.

Trump's Return to the White House

President Trump is marking 100 days since his return to the White House in January. Over the past three months, he has made bold announcements and decisions that many believe could reshape the global order.

In what has been described as a ‘chaotic’ first 100 days, the Republican president launched an unprecedented global tariff war, slashed US foreign aid, and aligned with Russia’s narrative regarding its invasion of Ukraine

Some of these decisions have had a direct impact on India. Here is a primer on the impact of Trump's moves on the country:

1- Reciprocal Tariffs

On 2 April, 2025, US President Donald Trump unleashed unprecedented tariffs on several countries, including India. The Trump administration had announced 26 per cent reciprocal tariffs according to the decision, causing a widespread stock market collapse and anxieties regarding the future of bilateral trade.

On 9 April, 2025, President Trump, however, announced a 90-day pause, until 9 July this year, on much of his reciprocal tariff policy.

While the tariffs have been suspended for now, India is working on a bilateral trade deal with India.

“Because the country will be making a fortune. Look, that's what China did to us. They charge us 100 per cent. If you look at India, India charges 100-150 per cent. If you look at Brazil, if you look at many, many countries, they charge—that's how they survive. That's how they got rich,” Trump told TIME in the recent interview.

Last week, Prime Minister Narendra Modi and visiting US Vice President JD Vance hailed the ‘significant’ progress made in trade talks between the two sides. A statement from Modi’s office, after the PM met Vance in New Delhi, said the two leaders “welcomed the significant progress in the negotiations for a mutually beneficial India-US Bilateral Trade Agreement”.

US Treasury Secretary Scott Bessent said on April 28 that many of America’s major trading partners have made "very good" offers to avoid new US tariffs. He added that one of the first trade agreements could likely be signed with India.

2- Deportation

India was one of the countries impacted by Donald Trump’s crackdown on illegal immigrants.

Visuals of over 100 Indian illegal immigrants deported from the United States in a military aircraft in handcuffs and leg restraints in February triggered an uproar in Parliament during the Budget Session, prompting questions about the treatment. The second leg of the Budget session that began on March 10 will end on April 4.

Illegal Indians have been deported earlier too, but the treatment visible in the viral video is what has sparked the row this time, however.

Last month, Prime Minister Narendra Modi-led Union government told the Parliament that 295 more Indian immigrants who are in the custody of the US Immigration and Customs Enforcement (ICE) could be deported to the country soon.

The government has, however, not received any information from the Donald Trump administration on the total number of illegal immigrants with Indian passports in the United States.

3- H-1B Visa rules

The Trump administration recently announced changes in the policies granting H-1B visas, one of the most sought-after work permits for foreign professionals aiming to work in the United States.

The Visa allows skilled workers to secure jobs in technology, engineering, healthcare, and finance. However, due to high demand, the US Citizenship and Immigration Services (USCIS) has implemented strict eligibility criteria and a lottery system to manage applications.

The Trump government intensified efforts to ensure US workers are given priority in employment opportunities, particularly concerning the H-1B visa program. The Equal Employment Opportunity Commission (EEOC) has intensified its enforcement against national origin discrimination, specifically targeting employers that unlawfully prioritise foreign workers on H-1B visas over American employees.

Indian nationals have historically been significant beneficiaries of the H-1B visa program. In 2023, 72 per cent of H1-B visas were granted to Indians.

However, according to media reports, the actual consequences for Indian engineers and technology specialists may be less severe than many anticipate.

4- USAID Budget Cuts

The US administration’s January 20, 2025, executive order aims to halt foreign aid, significantly impacting US Agency for International Development (USAID) - supported programs in India.

On 10 March 2025, the US Secretary of State Marco Rubio in a post on X platform announced that the US Government is officially cancelling 83 per cent of the programs of USAID or about 5,200 contracts that spent billions of dollars in ways that did not serve, and in some cases harmed, the core national interests of the United States.

“In view of the recent reports regards USAID funding in India, the Ministry of External Affairs has formally asked the US Embassy to urgently furnish details of expenditure incurred on all USAID assisted/funded projects in India over the last ten years,” the government said in a response in Parliament during the recently-held Budget session.

The USAID has been a key contributor to India’s health, environmental, and technological sectors. The biggest impact is expected on health-related programmes where USAID funds have funded research for long. Other sectors where impacts going forward are likely to be felt include education, gender and climate change.

The latest annual report of the Finance Ministry has disclosed that the agency funded seven projects worth $750 million in 2023-24, according to a PTI report in February.

F-1 visa-holders

Last week, the Donald Trump administration announced the restoration of student visa registrations for thousands of international students, including Indians, in the United States, following a period of abrupt and often unexplained terminations that left many at risk of deportation, Reuters reported.

This reversal of student visas for international scholars was revealed during a federal court hearing in Boston, where the Justice Department informed the court that US Immigration and Customs Enforcement (ICE) would reinstate the legal status of affected students and is now developing a new policy framework for future visa record terminations.

The controversy began when ICE, which maintains the Student and Exchange Visitor Information System (SEVIS) database tracking around 1.1 million foreign students, suddenly terminated the records of over 4,700 students since January 2025.

But, across the US, several Indian students found their statuses re-instated in the last 48 hours last week. The relief came amid a nationwide crackdown over ‘illegal immigrants,’ that has seen F-1 visa-holders being targeted and federal funding cuts to campuses.

Indians comprised the largest group of international students in the US in 2023-24, according to data from Open Doors. Of the 11.26 lakh international student, 3.31 lakh were from India (29 per cent of the total), followed by 2.77 lakh from China.

The American Immigration Lawyers Association (AILA) announced that about 50 per cent of the 327 international students, whose US visas were revoked, were Indians.

This is besides the ongoing confrontation between the Trump administration and prominent research universities in the US. The premier research funding agencies, among them the National Science Foundation (NSF) and National Institute of Health (NIH) have also slashed their grants, reflecting the Trump administration’s new financial priorities.

5- Tahawwur Rana Extradition

A Delhi court on April 28 extended the National Investigation Agency's custody of 26/11 accused Tahawwur Rana by 12 days. Rana, who was recently extradited from the United States (US), was produced before a special NIA court in Delhi on Monday.

India had been trying to extradite Rana for many years because of his association with terror organisations and his active involvement in the Mumbai attacks. Rana exhausted all his legal options available to such subjects in the US and is in India to face the law.

During a joint press conference with Prime Minister Narendra Modi in the White House in February, US President Donald Trump announced that his administration has approved the extradition of ‘very evil people of the world’ Rana ‘to face justice in India’.