India Cautious to Trump’s 25% Tariff Blow as Political Tempers Rise
PM Narendra Modi with US President Donald Trump Image credit The White House
Commerce Ministry reviews implications, Congress slams Modi’s US policy; experts say India already gave ‘unprecedented concessions’
By TRH News Desk
NEW DELHI, July 30, 2025 — After US President Donald Trump announced a 25% tariff plus penalties on Indian imports starting August 1, the Government of India has issued a cautious official response, indicating it is studying the implications of the decision and remains committed to securing a “fair, balanced, and mutually beneficial” bilateral trade agreement with the United States.
In a statement issued by the Ministry of Commerce, the government said: “The Government has taken note of a statement by the US President on bilateral trade. We are studying its implications.”
The ministry underscored that India has engaged in good-faith negotiations with the US over the past several months and reaffirmed its commitment to protecting domestic stakeholders: “The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”
Congress: “All That Taarif Meant Little”
The announcement has drawn sharp political criticism, particularly from the Opposition. Congress leader Jairam Ramesh slammed the Modi government for its perceived submissiveness in its dealings with Trump: “President Trump has slapped a tariff of 25% plus penalty on imports from India. All that taarif between him and Howdy Modi has meant little.”
He accused Prime Minister Narendra Modi of remaining silent on multiple slights from Trump, including:
- Trump’s repeated claims of mediating to stop Operation Sindoor,
- A special lunch hosted for Pakistan’s Army Chief, whose inflammatory remarks preceded the Pahalgam terror attack,
- And U.S. support for IMF and World Bank financial packages to Pakistan.
“Modi thought that if he kept quiet on the insults hurled at India, he would receive special treatment. Clearly, that has not happened,” Ramesh said.
Experts: India Already Conceded in Good Faith
Political analyst Ashok Malik echoed concerns from trade insiders, noting that India had negotiated the Bilateral Trade Agreement (BTA) in good faith, even offering “unprecedented concessions” in sensitive sectors like agriculture: “USTR officials acknowledged these concessions. Trump, it appears, wanted India to go further — even unrealistically further,” Malik said.
The statement suggests that India may have already reached the edge of its negotiating envelope, particularly in politically sensitive areas like agriculture, pharmaceuticals, and automobiles, where domestic opposition to foreign access is strong.
What’s Next for India–US Trade?
With bilateral trade surpassing $190 billion in 2024, the imposition of blanket tariffs on Indian imports could impact sectors like textiles, pharmaceuticals, steel, and auto components.
Trade watchers believe backchannel talks will intensify, especially with the August 1 deadline looming. However, whether India can secure a reprieve without further concessions remains uncertain.
“This is a delicate moment. India needs to balance strategic autonomy, economic protection, and a deeply unpredictable US political landscape,” said a former trade negotiator.
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