US Tariffs on India Spark Debate: From Pressure to Possible Talks
RSS chief Mohan Bhagwat recently said the US slapped tariffs on Indian goods because they fear India’s rising power. This isn’t just his view—experts agree it’s part of a bigger strategy to slow down India’s economy.
A fresh report from SBI Capital Markets, titled "Tariffs are Made in the USA, but Resilience is Made in India," calls the US tariff moves a major flashpoint. It targets India’s trade and aims to curb our economic growth. But here’s some good news: insiders say talks between the US and India could restart very soon as things start looking up.
Still, many people question why the US is hitting India so hard with these tariffs. China’s Ambassador to India, Xu Feihong, slammed the US this week, saying they use tariffs like a weapon to jack up prices. He called the 50% levy on Indian products unfair and unreasonable.
US President Trump’s choices have stirred up talk even in America. He skipped new sanctions on Russia and held back on steeper tariffs for China, but zeroed in on India’s energy imports from Russia. This got louder when the US suddenly canceled its team’s visit to New Delhi for the sixth round of trade talks last month. Instead, they added extra tariffs on Indian goods over those Russian oil buys.
KPMG, one of the top global accounting firms, noted this month that these US tariffs under Section 232 are shaking up supply chains. They hit key Indian sectors like copper, steel, aluminium, and automobiles hard, messing with prices and our global edge. India now feels more vulnerable to trade storms, so we’re rethinking our strategies to build tougher resilience.
Meanwhile, the US keeps chatting with China—also blamed for Russian imports—and has delayed new tariffs twice, pushing things to November 10. India’s Chief Economic Adviser, Anantha Nageswaran, warns these layered 25% + 25% tariffs on our exports are straight-up punitive. They could knock 0.5–0.6% off India’s GDP growth, basically trying to hit the brakes on our boom.
Trump hasn’t added fresh penalties on Russia beyond current oil buyer rules. He says he’s ready to move but is teaming up with European allies and pushing peace talks, so no quick escalations yet.
Things might be shifting now. Trump seems to be softening his tone. His pick for the next US ambassador to India, Sergio Gor, highlighted the "incredible relationship" between Trump and PM Modi. Gor pointed out that even while criticizing India’s trade practices, Trump always praises Modi.
These US moves mix strategy, trade leverage, and a push to disrupt ties between Russia, India, and China—keeping everyone on their toes. Shifts in US diplomacy and mixed signals from their own economy could explain the warming weather.
Adding to the mix, a US federal trade court ruled in May that Trump overstepped his powers with tariffs under the International Emergency Economic Powers Act. The Federal Circuit Court upheld this last month. Now, the Supreme Court will weigh in on US tariffs. The decision could shake things up for American businesses and exporters worldwide, including India.
As India builds its resilience against US tariffs, eyes are on these talks and court rulings to see how our trade story unfolds.
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