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Rising Kashmir > Blog > Editorial > US “Tariffs” India
Editorial

US “Tariffs” India

sameer
Last updated: August 1, 2025 2:00 am
sameer
Published: August 1, 2025
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US President Donald Trump has ended all speculations and made it clear that he is on a warpath and for him there is no distinction between friends and foes  when it comes to doing business. He has ensured by imposing a 25 % tariff and an additional penalty on India that he does not care  for what he used to call friendship with India. He has proved that he is leading a regime that wants to dismantle the world order by leaving no scope for objectivity and inclusive world order. He has mixed up by saying that India imports oil from Russia and does business with it. And for that he has said India will pay a penalty. This is indeed disgusting and unacceptable. This announcement is going to damage the Indian exports and the interests of the Indian government both in short term and long terms in the emerging business environment. For some time an impression was being created that the negotiations between the two nations will end in some positive settlement by the 1st August. But things have gone awry. At times Trump was boasting that a big deal with India  was round the corner but it has ended in a fiasco. It is pertinent to mention that India was one of the first nations to start the  negotiations  with the US on the tariff issue after there was a lot of  noise by the Trump and his administrations regarding the reciprocal tariffs.It has to be kept mind that the US is the India’s largest trading partner and India ran a  trade surplus of approximately $ 40 billion in 2024-2025 with exports of approximately $86 billion. Imposition of tariffs and penalty for doing business with Russia will have an impact  on the investments made in India  by many concerns to shift the business from China. Even small nations will be doing good in terms of business when analysed in the wake of this belligerent move by the US. It will be in the national interest that the Indian government should put the details in the public domain as the negotiations have failed and subjected the Indian economy to an unprecedented trouble. One more thing needs to be clarified  and that is India’s  unwillingness to open up sectors like agriculture. Small nations have to get a fair deal in terms of tariffs and comparatively free access to the US goods. What Trump has done by imposing 25% tariffs and penalty is unacceptable as it will impact the employability  as well. India will have to adopt strict business and market policy towards the US  and shun the flexibility that was so far in operation. In the present times when the absurdity of the Trump regime is dismantling the economic order when it seems that there is no alternative economic model in place  the International Monetary Fund’s(IMF’s) growth projections have no validity in such a fragile scenario. One thing is clear that the US can’t be trusted. India had tried to move closer to the US assuming it to be a democracy that was inclusive but it seems that the Cold War hangover is not over. In the recent India -Pakistan conflict Trump played a dubious role and made claims that eroded his credibility and the American government’s posturing made it clear that something is cooking in the policy circles there that is based on the political and economic inclination towards Pakistan, knowing it well that terrorism emanating from Pakistan based on religious extremism and radicalization has been posing serious threats to its populace and fre s society as well. India can’t close its eyes on the US duplicity. For India national interest and national security are non -negotiable. The US is engineering its business and economic policy   for India based on political subversion that can have devastating impact on Indian politico-economic eco-system. India must change its policy towards the US and uphold the national interests and make the Trump regime feel the heat.

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