Donald Trump announced a 25% tariff and other penalties on India.
Congress leader Rahul Gandhi reacted by calling the Indian economy "dead."
Other opposition leaders blamed the government's foreign policy and urged a strong response.
Political leaders from several of India's opposition parties have responded after former US President Donald Trump announced a plan to impose a 25% tariff on all goods imported from India, starting August 1.
In a statement on his Truth Social platform, Trump said an unspecified penalty would also be applied to India for its purchases of Russian oil and military equipment "at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE."
Reacting to the tariff imposed by the US, Congress leader and Leader of Opposition in the Lok Sabha, Rahul Gandhi, said everybody except Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman knows that the Indian economy is "dead."
Speaking to PTI reporters, Gandhi alleged that the BJP-led government has destroyed the country's economic, defence, and foreign policies.
"He is right, everybody knows this except the prime minister and the finance minister... I am glad that President Trump has stated a fact," Gandhi said, adding that the BJP has destroyed the economy to help billionaire Gautam Adani.
He also claimed that a trade deal with the US will happen and "Trump will define how this deal will happen. Modi will do what Trump tells him to do." In a later post on X, Gandhi listed reasons for his assessment, including the "Adani-Modi partnership," "Demonetisation and a flawed GST," and wiped-out MSMEs.
Congress MP Shashi Tharoor described the proposal as a "very serious matter for us," noting that the tariff, combined with an unspecified penalty, could reach 35-45% or even higher.
He stated that a 100% penalty "will destroy our trade with America," which he identified as a market for Indian exports valued around $87-90 billion. Tharoor suggested the announcement could be a bargaining tactic during ongoing negotiations but said if the demands are "completely unreasonable," India's negotiators have the right to resist.
He told PTI that India's average tariff on American goods is about 17% and that India has other options, including ongoing trade talks with the European Union and a concluded deal with the UK.
P. Chidambaram, a senior Congress leader, referred to the proposed tariff and penalty as a "big blow to India's trade with the U.S." and "a clear violation of the WTO rules."
In a post on X, he wrote, "'Dosti' (friendship) is no substitute for diplomacy and painstaking negotiations." Other Congress members commented, with Priyanka Gandhi stating, "PM Modi goes everywhere, and then this is what we get," while Rajiv Shukla called it a "really wrong step."
India will take all necessary steps to protect its national interest, said the Commerce and Industry Minister Piyush Goyal, In a statement in the Lok Sabha, he said the government is studying the implications of these tariff announcements made by US President Donald Trump.
Bahujan Samaj Party (BSP) chief Mayawati urged the Central government to view the situation as an opportunity to advance India's "self-reliance." In a post on X, she said the government must work to ensure the economy remains unaffected by the US measure.
She expressed hope that the interests of farmers, small and medium industries, and national priorities would not be compromised.
Aam Aadmi Party (AAP), MP Sanjay Singh accused Prime Minister Narendra Modi of "insulting India every day" and said the Prime Minister "should strongly oppose this move."
