What's Straining India–US Ties? Lawmakers Blame Trump Tariffs and H1B Visa Fee Hikes

American lawmakers on Wednesday raised concerns that new tariffs and steep fees on H1B visas under the Trump administration are straining economic and people-to-people ties between the United States and India.At

a House Foreign Affairs Subcommittee hearing on South and Central Asia, Rep. Ami Bera said long-standing bipartisan support for the US-India partnership remains strong, but recent policy decisions are creating friction.The hearing, titled “The U.S.–India Strategic Partnership: Securing a Free and Open Indo-Pacific,” featured testimony from Jeff Smith of the Heritage Foundation, Dhruva Jaishankar of the Observer Research Foundation America, and Sameer Lalwani of the German Marshall Fund.Bera said the administration’s decision to impose a USD 100,000 fee on H1B visas “hurts American companies” and undermines business ties.

https://www.youtube.com/watch?v=tdBYJWF5bn8

He added that images of Prime Minister Narendra Modi meeting Russian President Vladimir Putin and Chinese President Xi Jinping “cause some heartburn for folks in Congress.”Democratic Rep. Pramila Jayapal warned that the 50 percent tariffs announced by the administration are damaging both economies. She said the policies hurt Indian exporters as well as American businesses and consumers.Jayapal, who came to the US first on a student visa and later an H1B visa, said she understands personally how restrictive immigration policies affect families and workers. She argued that the administration’s crackdown on legal immigration threatens the longstanding people-to-people connections that underpin the bilateral partnership.She also voiced concern about growing anti-Indian hate in the US and stressed the contributions of Indian-Americans, who she said play a major role in technology, research and Fortune 500 companies.Dhruva Jaishankar said US-India ties have come a long way since sanctions following India’s 1998 nuclear tests. But he warned that progress has slowed due to political disagreements, especially on trade. He said President Trump’s push for greater market access in India aligns with what New Delhi is already offering, noting India has signed several trade agreements and is negotiating more.Jaishankar said resolving tariff disputes is within reach. He also cited concerns about Washington’s renewed engagement with Pakistan’s military, arguing that India views third-party involvement in India-Pakistan issues as historically counterproductive.He said the partnership still has “considerable” potential for deeper cooperation if the two countries can manage differences over trade and Pakistan.