Former US Envoy Reveals How Trump Damaged US-India Relations Over Personal Ego and Pakistan Business Deals

US President Donald Trump and former US ambassador to Japan Rahm Emanuel.

According to Rahm Emanuel, the former US envoy to Japan, President Donald Trump has effectively "thrown away 40 years" of diplomatic efforts to strengthen US-India relations "out of ego and some money from Pakistan."

Emanuel emphasized that India could have served as a significant counterbalance against China for the United States, but President Trump "threw it all away," describing this as a "major strategic blunder."

During his interview with Meidastouch network, Emanuel, who previously served as Chief of Staff to former President Barack Obama, elaborated on this diplomatic setback.

"The mismanagement of India, which is a major, major counterweight against China, not only regarding manufacturing and technology but also militarily... The President of the United States has literally thrown away 40 years of meticulous strategic planning and preparation in enhancing and warming relationships through democratic administrations," Emanuel stated.

He added, "Trump threw it all away because Indian Prime Minister Narendra Modi refused to declare that the President deserves a Nobel Peace Prize for the ceasefire he negotiated with the Pakistanis," referencing Trump's repeated assertions about mediating peace between India and Pakistan following Operation Sindoor.

Emanuel claimed Trump compromised US-India relations "out of his ego and for the money from Pakistan, which was paying both his son and the son of his aide, Steve Witkoff." He described this as "a major strategic blunder that China has used to their advantage. That is on the strategic level."

The former envoy was referring to an agreement between a private US cryptocurrency firm and Pakistan's Crypto Council. This fintech enterprise, owned by Steve Witkoff's son Zachary Witkoff, has majority stake-holding by President Trump's sons Eric and Donald Junior, as well as his son-in-law Jared Kushner, who collectively own 60 percent of the company. In April, the firm signed a Letter of Intent with the Pakistan Crypto Council.

Diplomatic relations between New Delhi and Washington have deteriorated significantly after Trump doubled tariffs on Indian goods to 50 percent, including an additional 25 percent duty on India's purchases of Russian crude oil. India has characterized the US action as "unfair, unjustified and unreasonable."

According to the Centre for Research on Energy and Clean Air (CREA), India ranks as the second-largest buyer of Russian fossil fuels after China. Washington has maintained that India is helping Russian President Vladimir Putin finance the war through its purchase of Russian crude oil.

New Delhi has consistently asserted that its oil imports are guided by national energy security and affordability concerns, and that its position on the Russia-Ukraine conflict remains "independent and balanced."