India Condemns US Tariffs as Unfair
India has strongly criticized the recent imposition of additional tariffs by the United States, calling them “unfair,” “unjustified,” and “unreasonable.” The move comes after President Donald Trump announced a 25% tariff on Indian imports, primarily targeting goods from New Delhi due to its continued trade with Russia. This decision is seen as a significant blow to the already strained relationship between the two nations.
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The new import tax, which will take effect 21 days after August 7, could raise duties on certain Indian exports to as high as 50%. However, this period provides an opportunity for India and Russia to engage in discussions with the U.S. administration to address the issue. Despite this, experts suggest that the situation marks a low point in U.S.-India relations, potentially undermining the progress made over the years.
Indian Prime Minister Narendra Modi has faced pressure from both opposition parties and the public to take a stronger stance against Trump’s policies. In a statement, the Indian foreign ministry reiterated its position, emphasizing that the tariffs are not only unjust but also detrimental to India’s energy security, which serves a population of 1.4 billion people.
Implications for India’s Economy
The tariffs pose a serious threat to India’s access to the U.S. market, which is its largest export destination. In 2024 alone, shipments to the U.S. totaled nearly $87 billion. Sectors such as textiles, footwear, gems, and jewellery are particularly vulnerable. According to Reuters, the increased duties place Indian exporters at a 30–35% disadvantage compared to competitors like Vietnam, Bangladesh, and Japan.
In 2024, the U.S. recorded a $45.8 billion trade deficit with India, indicating that more goods were imported from India than exported. This context highlights the economic significance of the relationship and the potential fallout from the new tariffs.
Impact on Key Industries
Industry experts warn that several key export sectors, including leather, chemicals, footwear, gems and jewellery, textiles, and seafood, will face significant setbacks. A think tank called the Global Trade Research Initiative estimates that the new tariffs could reduce exports to the U.S. by 40–50%.
Specifically, organic chemical exports to the U.S. will face an effective duty of 54%, while carpets, knitted apparel, woven apparel, diamonds, gold, machinery, and mechanical appliances will be hit with levies ranging from 50% to 60%. The Confederation of Indian Textile Industry (CITI) has expressed deep concern, calling the move a major blow to the industry.
Future of India-U.S. Relations
President Trump has intensified his criticism of both New Delhi and Moscow, labeling them as “dead economies” in a recent social media post. He has also threatened further tariffs on India for its “massive purchases of Russian oil,” which he claims fuel Moscow’s war in Ukraine.
Analysts warn that this latest move could undo decades of diplomatic progress and derail other areas of cooperation. Farwa Aamer, Director of South Asia Initiatives at Asia Society, emphasized the need for leadership-level talks to address the issues and prevent further strain on bilateral relations.
She added that India must navigate a delicate balance between its relationships with Russia and the U.S., as any further strain on U.S.-India ties could benefit China’s growing influence in the region.
Broader Geopolitical Implications
While Trump’s executive order did not explicitly mention China, he later suggested that similar tariffs could be imposed on Chinese goods. This development comes amid growing concerns about China’s continued imports of Russian oil, with U.S. Treasury Secretary Scott Bessent warning of potential new tariffs as the current U.S.-China tariff ceasefire expires on August 12.
As tensions escalate, the future of India-U.S. relations remains uncertain. With both sides under domestic political pressures, the path forward will require careful diplomacy and strategic decision-making to maintain stability and mutual interests.
