India has strongly pushed back against the United States' recent trade tactics, particularly the imposition of steep tariffs on Indian products, signalling growing tensions in bilateral economic relations.

On August 6, 2025, the US, under President Donald Trump, imposed an additional 25% tariff on many Indian goods, raising the total tariffs to 50%. This action was primarily a punitive measure linked to India's continued purchase of Russian oil amidst the geopolitical conflict in Ukraine.

The 50% tariff rate makes India one of the most heavily taxed US trading partners, alongside Brazil, and significantly disrupts a trade relationship that reached $190 billion in 2024, with India exporting $87 billion worth of goods to the US. Key sectors affected include textiles, gems and jewellery, leather, marine products, chemicals, and auto components, which represent approximately 55% of India's exports to the US.

Critical exemptions have been made for pharmaceuticals, semiconductors, energy resources, and critical minerals, shielding important sectors such as India's pharmaceutical exports, which dominate 50% of the US generic drug market.

The tariffs pose a serious threat to India's export-driven economy, potentially reducing GDP growth by 0.2–0.5% and affecting the competitiveness of Indian small and medium enterprises particularly against Asian rivals with lower tariffs.

Indian Defence Minister Rajnath Singh has publicly criticized these hostile trade tactics, accusing the US of deliberate attempts to derail India's economic ascent through these manipulative and punitive trade measures.

Singh pointed out that certain global powers feel threatened by India's rapid growth and are acting to make Indian products prohibitively expensive in international markets.

He emphatically stated that no power can stop India's progress toward becoming a leading global power. Singh highlighted India's defence sector as a symbol of national resurgence, noting the remarkable rise in defence exports to ₹24,000 crore annually since 2014 under Narendra Modi's leadership. This sector has remained resilient despite the trade tensions.

Additionally, India's Minister for Road Transport and Highways, Nitin Gadkari, and other prominent BJP leaders have also voiced dissatisfaction with the US tariffs. They emphasize that such economic sanctions are not a new tactic but have been previously encountered, citing historic instances such as during Prime Minister Atal Bihari Vajpayee's era, when the US imposed economic sanctions following India's nuclear tests.

BJP officials warn that these tariffs could backfire on the US, which relies heavily on Indian affordable generic medicines and several other imports. They argue that India's large internal market and strategic partnerships with countries like Russia and China buffer the economic impact of such measures.

The Indian government is actively seeking diplomatic solutions and exploring relief measures for exporters, including interest subsidies and logistical improvements to mitigate tariff shocks.

Negotiations between India and the US are set to resume from August 25, 2025, after the failure to reach an agreement by the earlier August 1 deadline and the introduction of tariffs. These talks aim to resolve ongoing trade barriers and alleviate pressures on Indian exporters.

Meanwhile, the Indian government is working to support affected sectors such as steel, marine products, agriculture, and food processing through various government schemes and incentives.

The US tariffs have caused significant unease in India as they risk disrupting a vital trade relationship. The tariffs were viewed as an act of economic hostility, with Indian officials perceiving them as punitive and unfair, especially given

India's rationale of energy security in its oil purchases from Russia. This strain in trade ties reflects broader geopolitical complexities but also highlights India's growing assertiveness in protecting its economic interests and asserting its rise on the global stage.

India has vocally condemned the US's tariff hikes as protectionist and hostile trade tactics aimed at undermining India's economic growth.

Senior leaders have united in their criticism, with ministers like Rajnath Singh and Nitin Gadkari calling out the US and asserting India's unstoppable rise as a global power. Simultaneously, diplomatic efforts are underway to negotiate a resolution, while the Indian government prepares to shield its exporters from the economic fallout of these aggressive tariffs, underscoring a firm stance against external pressures in safeguarding India's economic sovereignty and strategic interests.

Based On ET News Video Report