Indian opposition parties slammed Prime Minister Narendra Modi’s government after US President Donald Trump threatened a 25% tariff on Indian imports. The move has sparked sharp criticism, calling it a diplomatic failure by New Delhi. The Indian rupee fell and stock markets dipped amid fears over the impact on trade and economic growth.
Trump announced the tariff would begin on Friday and include penalties related to India’s dealings with Russia and the BRICS group. India remains heavily reliant on Russian oil, which supplies 35% of its imports in 2025. The government said it is reviewing Trump’s remarks and is committed to achieving a fair trade deal.
Opposition leaders, including Rahul Gandhi, blamed Modi’s government for failing in economic and foreign policy. They demanded parliamentary discussions on the tariff and its impact on India’s exports. Commerce Minister Piyush Goyal is expected to address the parliament soon regarding the situation.
Economists warn the tariff could severely hurt India’s manufacturing growth and reduce GDP growth by up to 0.4% in the current fiscal year. India’s equity markets and the rupee both showed early signs of stress but later stabilized somewhat. Experts also fear this could damage India’s role as a manufacturing alternative to China.
Despite ongoing trade talks, Trump’s tariff on India is harsher than those on other major trading partners like Vietnam and Indonesia. India’s growing trade ties with the US rival Pakistan have also complicated relations. India is now working to diversify its global trade links to reduce vulnerabilities amid mounting uncertainty.