Trump’s Outburst, India’s Response, Political Storm: Major Highlights In Ongoing Trade Deal Debate
US President Donald Trump has imposed a 25% tariff on Indian exports citing India’s high import duties and its purchase of Russian oil. While experts anticipate minimal impact on GDP, crucial sectors may face noticeable effects.
Just ahead of the August 1 deadline, President Trump announced a 25% tariff and penalties on Indian goods, despite ongoing trade discussions between Washington and New Delhi.
The announcement drew strong criticism from opposition parties, while the Indian government stated it would assess the implications. Experts believe the impact on GDP would be marginal—around 30 basis points—but sectors such as pharmaceuticals, gems and jewellery, textiles, and automobiles are likely to bear the brunt. Indian stock markets, which had been range-bound in recent days, ended lower but did not react sharply.
Trump linked the tariff move to India’s increasing oil imports from Russia and its position within BRICS, which the US sees as anti-American. However, he later softened his stance, saying, “he doesn’t care what India does with Russia.”
Despite the tariff being in place, Trump indicated he remains open to talks and hinted that a deal may be finalised by the end of the week.
What Did Trump Say?
Although Trump refers to Prime Minister Narendra Modi as his “friend”, he criticised India for imposing excessively high tariffs and not doing “much business” with the US.
Even while continuing his attack, the US President expressed his readiness to negotiate a deal with India.
“They have one of the highest tariffs globally. Now they are willing to cut it significantly. But let’s see. We’re talking to India. We’ll see how it goes. It’s not a big deal if there’s no deal—we can simply apply tariffs. But you’ll know by week’s end,” he remarked from the White House on Wednesday.
Trump also described India’s economy as “dead”, suggesting that New Delhi and Moscow could jointly harm their economies.
How Did India React?
Soon after Trump’s announcement, the Indian government said it was evaluating the impact of the tariffs. It reaffirmed that discussions are ongoing and promised to take all necessary steps to protect national interests.
The government also reiterated its strong commitment to safeguarding the welfare of farmers, small businesses, and entrepreneurs.
Union Commerce and Industry Minister Piyush Goyal addressed Parliament, stating, “We will take every measure required to protect our national interest.”
Political Uproar Over Tariffs
The opposition wasted no time in criticising the government, using Trump’s statements as ammunition. Congress leader and Lok Sabha LoP Rahul Gandhi echoed Trump’s “dead economy” remark.
“Yes, he’s correct. Everyone knows it except the Prime Minister and Finance Minister. The Indian economy is dead. I’m glad President Trump has spoken the truth,” Rahul Gandhi told the media.
While Gandhi attacked the Modi government, Congress leaders Shashi Tharoor and Rajiv Shukla criticised Trump.
Tharoor, who has occasionally supported the government on issues like Operation Sindoor, said India must not give in and should negotiate strongly with the US.
Even Rajiv Shukla echoed Tharoor’s view, saying, “This is a poor move by the US. Our government sees Trump as a friend, but he’s slapped us with this decision. Indian businesses will suffer. We’ll raise this in Parliament… When there’s so much bonhomie between India and the US, why is Trump creating trouble?”
The Trinamool Congress also slammed the government, calling the episode a failure of foreign policy.
“They portrayed Trump as PM Modi’s close friend. But such decisions damage India’s dignity and self-respect,” said TMC’s Kunal Ghosh.
Meanwhile, the BJP and its allies hit back at the opposition for attacking the government over the tariff issue.
Former Union Minister and BJP MP Anurag Thakur said, “Leader of Opposition Rahul Gandhi seems to specialise in criticising India. The moment anyone makes an anti-India statement, he grabs it and speaks without thinking.”
Echoing the sentiment, Shiv Sena MP Milind Deora stated, “In countries like the US, when tariffs are imposed, the whole nation stands with the government. Sadly, in India, some in the opposition are eager to celebrate temporary setbacks. I hope they mature and put the country before politics.”
