Trump’s 25% Tariff: Take Inspiration From Indira, Jabs Congress As Government Says It Is Studying Implications
US President Donald Trump announced a 25% tariff on Indian imports, effective from August 1, 2025, alongside an additional penalty citing India’s trade practices and ties with Russia. The decision, which Trump justified in a statement posted on social media platforms on July 30, 2025, has sparked sharp reactions in India, with the Congress party criticising Prime Minister Narendra Modi’s foreign policy while the government pledges to safeguard national interests.
Trump’s statement highlighted India’s high tariffs and “strenuous and obnoxious non-monetary trade barriers,” which he claims have limited US-India trade. He also pointed to India’s purchase of military equipment and energy from Russia, particularly amid global calls for Russia to end its conflict in Ukraine, as a reason for the punitive measures. “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st,” Trump declared, adding, “All things not good!” The announcement follows months of stalled negotiations for a bilateral trade agreement, with Trump previously hinting at tariffs ranging from 20-25% if a deal was not finalised by the August deadline.
India’s response, issued by the Press Information Bureau on July 30, 2025, was measured but resolute. The government acknowledged Trump’s statement and said it is “studying its implications.” Emphasising ongoing efforts to secure a “fair, balanced, and mutually beneficial” trade agreement with the US, the statement underscored India’s commitment to protecting its farmers, entrepreneurs, and micro, small, and medium enterprises (MSMEs). “The Government will take all steps necessary to secure our national interest,” it affirmed, drawing parallels with India’s recent Comprehensive Economic and Trade Agreement with the UK.
The Congress party, the numero uno opposition party in India, however, seized the opportunity to lambast Modi’s handling of US relations. Senior Congress leader Jairam Ramesh took a pointed jab, stating, “All that taarif between him and Howdy Modi has meant little” – in a reference to the even PM Modi attended in support of Donald Trump in the US. Ramesh accused Modi of remaining silent on perceived insults from Trump, including unverified claims about halting “Operation Sindoor” 30 times, a US-hosted lunch for the Pakistan Army Chief amid regional tensions, and American support for Pakistan’s financial packages from the IMF and World Bank. “Mr. Modi thought that if he kept quiet… India would get special treatment at the hands of President Trump. Clearly that has NOT happened,” Ramesh remarked. He urged Modi to “take inspiration from Indira Gandhi and stand up to the US President,” invoking the former prime minister’s assertive diplomacy during her 1971 standoff with US President Richard Nixon.
The tariffs, which are slightly lower than the 26% rate Trump imposed on India during his April 2025 “Liberation Day” announcement, are expected to impact key Indian export sectors such as gems, jewellery, marine products, electronics, and auto parts. However, India’s textile and apparel industries may benefit as rival China faces a steeper 145% tariff. Earlier this year, India attempted to mitigate US concerns by reducing duties on American products like Harley-Davidson motorcycles and bourbon whiskey, and offering cuts on over half of its $23 billion worth of US imports. Despite these concessions, a trade deal remains elusive, with sticking points in agriculture and dairy sectors hampering progress.
