Trump’s 50 Per Cent Tariff: What Are Voices In Indian Politics Saying?

A White House executive order of July 31 formalised the imposition of a 25 per cent tariff on India’s exports to the United States to be implemented from August 7. US President Donald Trump on Wednesday, hours before the imposition of the aforementioned tariff, declared an additional 25 per cent to be levied. This takes the total tariff to 50 per cent.

Trump asserts this increased tariff as a penalty for India’s continued purchase of Russian oil. Trump also alleged India of “fueling the war machine”, referring to the ongoing Russia-Ukraine conflict.

"India has not been a good trading partner, because they do a lot of business with us, but we don't do business with them. So we settled on 25 per cent, but I think I'm going to raise that very substantially over the next 24 hours, because they're buying Russian oil. They're fueling the war machine," said US President Donald Trump.

According to PTI, the announcement is being seen as a pressure tactic to get India to agree to demands made by the US in the proposed bilateral trade agreement (BTA). A US team is scheduled to visit India from August 25 for the sixth round of negotiations for the proposed BTA.

Exports of most goods are expected to suffer due to the extremely high tariff rate. According to think tank GTRI, the new tariffs are expected to make Indian goods incredibly expensive in the US, “with potential to cut US-bound exports by 40–50 per cent,” according to Mint. Indian products are already suffering due to intense competition in the US markets.

Indian government bodies and politicians across party lines have commented on the US decision.

Statement By Ministry Of External Affairs

"The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," said the MEA in its statement.

"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," the statement added.

Modi has ‘failed’, Said Mallikarjun Kharge

Congress president Mallikarjun Kharge posted on X, “India's national interest is supreme. Any nation that arbitrarily penalises India for our time-tested policy of strategic autonomy, which is embedded in the ideology of Non-alignment, doesn't understand the steel frame India is made of.”

“From the threats of 7th fleet to the sanctions of Nuclear tests, we have navigated our relationship with the US with self-respect and dignity. Trump's 50% Tariffs comes at a time, when our own diplomacy is disastrously dithering,” he added.

He stated that Prime Minister Narendra Modi and his government have failed to negotiate a trade deal with the United States despite several months of negotiations, and now Trump is "intimidating and coercing us".

'India Must Retaliate,' Said Sashi Tharoor

“This is absolutely unjust; we will have to stand up against it. America itself buys various other items from Russia, such as Uranium and Palladium. That money does not go to the Ukraine war, but our money does!” said Congress MP Sashi Tharoor, implying there are other reasons for the imposition of these extreme tariff rates.

“India does not have a policy of threats, so we should wait for three weeks, and retaliate if nothing changes,” he added.

“Economic Blackmail,” said Rahul Gandhi

"Trump’s 50% tariff is economic blackmail - an attempt to bully India into an unfair trade deal. PM Modi better not let his weakness override the interests of the Indian people," the Leader of Opposition, Rahul Gandhi, remarked.

“Modi’s hands are tied,” he stated, reasserting his long-standing allegations that “Modi cannot stand up” against Trump and the link between Modi and Indian industrial giants.

“Modi has gone out of his way to please Trump,” says Siddaramaiah

Supporting Rahul Gandhi’s statement and stance, Karnataka CM Siddaramaiah, referring to the 50 per cent Tarrif said, “It is economic blackmail — the result of PM’s prioritising headline management over real diplomacy and national interest.”

“Since 2019, PM Modi has gone out of his way to please Trump — from the optics of Howdy Modi (where “Abki Baar Trump Sarkar” was raised) to hosting Namaste "Doland" Trump during a looming COVID threat, to coining "MAGA + MIGA = MEGA". He even courted Elon Musk, knowing his ties to Trump,” he added.

Reserve Bank Governor Sanjay Malhotra, however, said he does not see a "major impact" of US tariffs on domestic inflation.