But hats off to Indian Government for standing up to his threats and protecting their own.
Donald Trump lashed out with a 25% tariff on Indian goods
- An additional penalty for buying oil from Russia.
- questioning the strength of our economy
- demanding sweeping market access for U.S. agriculture, dairy, ethanol, autos, and more.
But New Delhi didn’t flinch.
Because this was about farmers.
- India refused to open its agricultural and dairy sectors to subsidised U.S. products. Why? Because our farmers who feed over 1.4 billion people are the backbone of this nation.
- Agriculture may contribute only 16% to our GDP, but it sustains nearly half our population.
- This sector isn’t just economic. It’s emotional, cultural and political.
- A similar push a few years ago with the farm laws saw massive protests but this time it was different.
Trump also mocked our relationship with Russia
Let's talk about facts
- Since the 1950s, Russia (then the USSR) has stood by India in Kashmir, in wars, in diplomacy. Russia has always been consistent.
- Our bilateral trade with Russia soared to $68.7 billion in FY25, up nearly 6X from pre-pandemic times.
- We are the largest importer of Russian arms.
- Despite pressure, India has maintained neutrality in the Russia-Ukraine war, balancing strategic autonomy with realism.
And then came the "dead economy" jibe.
- India has gone from fragile five to a $4 trillion economy.
- We're one of the fastest-growing major economies in the world.
- From digital payments to defence production, the momentum is visible.
Yes, tariffs is going to be really bad
-The U.S. is our biggest export market, accounting for nearly 25% of exports recently.
- A tariff war could hit sectors like textiles, pharmaceuticals, IT services and automotive components.
- India’s weighted average tariff rate may now stand 5–10 percentage points higher than Asian peers.
- Short time competitiveness may be impacted
- There’s also talk of the U.S. imposing 500% tariffs on countries buying Russian oil.
- And yes, then comes engaging with Pakistan on oil reserves, a move that perfectly sums up how unpredictable this guy can be.
This imposition of tariff is expected to adversely impact some of the major employment-generating sectors, which were optimistic for a more balanced tariff regime with the US.
While Govt wants to send a message that India’s focus is on deals that benefit both countries, there is also an openness to engage in trade discussions.