by G H Kumar

India stands out as the only major power firmly resisting U.S. President Donald Trump's imposition of tariffs, unlike other countries that have acquiesced. In 2025, Trump escalated tariffs on Indian imports to 50%, one of the steepest rates imposed by the U.S. on a major Asian partner, primarily as a punitive measure for India's continued purchase of discounted Russian oil amid sanctions against Russia’s invasion of Ukraine. Despite this, India remains undeterred, adopting a strategy of calm resilience and carefully calculated negotiation rather than capitulation.

India’s refusal to succumb to these tariff pressures is grounded in its sovereign economic and political interests, particularly concerning its vast agricultural and dairy sectors which support millions of livelihoods. Prime Minister Narendra Modi has publicly declared that he will not compromise on the welfare of farmers, fishermen, and dairy producers, even if the tariffs inflict significant economic costs on India. This stance reflects a broader commitment to preserving national sovereignty and protecting domestic constituencies rather than yielding for trade concessions alone.

The tariff imposition is widely seen in India and among analysts as a strategic bargaining tactic rather than a principled measure strictly tied to the Russia issue. Trump’s move closely follows protracted and faltering trade talks with India, aimed at gaining greater U.S. access to sectors like agriculture, dairy, and pharmaceuticals where India has historically maintained protective tariffs.

India’s negotiating team, while engaging constructively, has faced shifting U.S. positions and political limitations, leading to stalled agreements despite nearing a deal. India continues to signal willingness to negotiate but on terms that do not undermine core domestic interests.

The implications of India’s resistance extend beyond economics into geopolitical and strategic dimensions. The tariff spat threatens decades of U.S.-India partnership efforts aimed at counterbalancing China in Asia, reflected in tensions within the Quad alliance (U.S., India, Japan, Australia) and long-standing bilateral cooperation in trade and security. India’s measured stance underscores a balancing act—maintaining strategic autonomy while managing ties with both the U.S. and Russia, its key international partner.

Economically, experts forecast that the 50% tariff will impact Indian exports to the U.S., which amounted to $86.5 billion annually. Many Indian exporters reportedly cannot absorb even a 10-15% duty rise, making the full tariff a severe blow potentially akin to a trade embargo in affected sectors. Yet, India’s robust domestic demand and the strength of its services sector are expected to mitigate some of the economic fallout, cushioning growth from the direct tariff impact.

In response to the tariff imposition, India is reassessing and reviewing its market access offers to the U.S. with a view to balancing trade opportunities while steadfastly protecting its red lines, especially in agriculture and dairy, where market openings remain off the table. This pragmatic yet firm approach demonstrates India's resolve to uphold national interests without resorting to retaliatory tariffs immediately, despite precedent in earlier U.S.-India tariff disputes.

India’s resistance to Trump’s tariff tantrums reflects a sophisticated posture of sovereign economic strategy, firm protection of domestic key sectors, and calculated diplomacy in balancing trade negotiations against geopolitical realities. While other major powers have yielded or adjusted in the face of U.S. tariff pressures, India remains the lone major actor standing firm, prioritising long-term national interests over short-term concessions.

India's Emergence As The Lone Leader

India is increasingly emerging as a central leader of the Global South, a dynamic bolstered by its robust economic growth, strategic diplomacy, and firm stance in international trade conflicts, particularly in response to tariff pressures from the United States under former President Donald Trump.

Economically, India ranks as the world's fourth-largest economy, with strong growth fuelling its expanding trade networks within the Global South. Its trade volume with African countries surged from $5 billion in 2001 to $90 billion by 2020, and India ranks among the top suppliers in Latin America, exemplifying its increasing economic influence and role in South-South cooperation.

This economic clout has translated into enhanced leadership capacity among developing nations, positioning India as a major player in shaping trade and development agendas for the Global South.

Diplomatically, India has leveraged its historic anti-colonial credentials and democratic governance model to build a bridge between the Global South and developed nations. It actively champions reforms in global governance institutions to better represent emerging economies and advocates for multilateralism and equitable global policies.

India's leadership was notably exemplified during its G20 presidency in 2023, where it advanced the inclusion of the African Union as a permanent member, and promoted sustainable development, climate justice, and digital transformation initiatives. These efforts highlight India's commitment to an inclusive, equitable, and sustainable global order that resonates with the aspirations of the Global South.

India's leadership is further underlined by its dedicated outreach through platforms like the Voice of the Global South Summits, which convene over 120 developing countries to address shared concerns such as climate change, debt crises, food and energy security, and bridging the digital divide. This not only amplifies the voice of developing countries but also cements India’s role as their representative on the world stage.

Concerning trade tensions specifically with the United States, India, under Prime Minister Narendra Modi, has taken a resolute stance against Trump's tariff escalations. When the U.S. imposed a 50% tariff on Indian goods as punishment for India’s purchase of Russian oil, Modi publicly declared that India would not compromise the interests of its farmers, dairy farmers, and fishermen — even at a personal and economic cost.

This stance reflects India's broader policy of prioritising national sovereignty and self-reliance over yielding to external pressures, reinforcing its image as a firm and principled leader within the Global South who defends the interests of its people against economic coercion.

India’s balanced diplomatic approach—navigating pressures from both the Global North and South, and maintaining strategic partnerships with countries like the United States and Russia—enhances its credibility as a mediator and bridge-builder in global affairs.

Unlike a zero-sum approach often attributed to other major powers, India promotes dialogue, cooperation, and sustainable development. Its leadership in renewable energy initiatives, such as the International Solar Alliance, and its efforts in technological innovation and humanitarian aid, further distinguish India as a model for inclusive and sustainable development that many Global South countries aspire to emulate.

India’s emergence as the leading voice of the Global South is underscored by its growing economic influence, diplomatic leadership that emphasises inclusion and reform, and a strong stance on protecting its national interests in the face of external economic pressures like Trump’s tariffs.

This multifaceted leadership role is transforming India into a central and transformative force in global geopolitics, advocating for a more balanced and equitable world order that aligns with the needs and aspirations of developing nations worldwide.

G H Kumar writes on national security, military technology, strategic affairs & policies. This essay reflects author's opinions alone