Trump's 25% Tariff on India Sparks Outrage from Strategic Experts

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Critics say India is being punished despite early trade concessions; experts warn move benefits China and pressures India to choose between US and Russia

By TRH Foreign Affairs Desk

NEW DELHI, July 30, 2025 — US President Donald Trump has triggered a wave of criticism from economists and geopolitical experts after announcing a flat 25% tariff on all Indian imports, effective August 1, citing high Indian tariffs and India’s continued energy and defence ties with Russia.

The tariff, announced via Trump’s Truth Social platform, has left strategic and economic analysts baffled, especially given India’s long-standing efforts to negotiate a trade agreement and deepen its commercial ties with the United States.

“India will be paying a tariff of 25%, plus a penalty… starting on August 1,” Trump declared in his post, accusing India of having “among the highest tariffs in the world” and continuing military and energy purchases from Russia despite the war in Ukraine.

Outrage from Global Experts

The announcement was met with swift criticism from economists and foreign policy watchers, who warned the move could backfire geopolitically and economically — not just for India, but for US interests in the Indo-Pacific.

Edward Luce, columnist at the Financial Times, condemned the decision: “Trump’s 25 per cent India tariff is obnoxious and yet another gift to China. He’s punishing poorer countries more than richer ones and alienating the global south. Stupidity doesn’t cover the damage Trump is doing.”

M.K. Venu, senior economic analyst, also expressed concern, calling the development “geopolitically damaging” for India. “Even more damaging could be Trump threatening additional penalties for India buying Russian oil and arms,” Venu warned.
He also stated that “India is being forced to make a geopolitical and economic choice. This is despite being among the first countries to engage Trump’s team on trade talks.”

India is the only major economy to face the full 25–26% tariff initially proposed by Trump in April and then paused. According to Venu, China, Japan, the EU, and Indonesia were all able to negotiate lower tariff levels or avoid them altogether.

India’s Trade Concessions Ignored

Michael Kugelman, a noted geopolitical expert, called the decision “deeply unfair” to India: “India made early concessions—reduced tariffs, increased US imports, and boosted investments in America. Despite that, it’s hit with the harshest tariff slab. That’s not how you treat a strategic partner.”

Trump’s post claimed India’s high trade barriers and its continued purchases from Russia as justification. However, critics argue the tariffs will undermine trust and force India into a hard geopolitical corner, especially at a time when New Delhi is seen as a balancing force in a divided global order.

Negotiations for an interim US-India trade deal have failed to reach a conclusion, leaving India vulnerable to unilateral tariff action. India has yet to issue an official response to Trump’s latest move. However, trade officials in New Delhi privately expressed frustration, stating that India had demonstrated goodwill and strategic alignment on several fronts, including Indo-Pacific security and supply chain cooperation.

With bilateral trade exceeding $190 billion, the United States is India’s largest trading partner. The imposition of a 25% blanket tariff could have wide-reaching consequences for Indian exporters, particularly in pharmaceuticals, textiles, auto components, and IT services.

Strategists also warn of a broader diplomatic rift, which could weaken India-US alignment at a critical time in global geopolitics.

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