The tariff tensions between Washington and New Delhi reached a new high on Monday after the Trump administration published a draft notice imposing 50% duty on Indian goods, doubling the earlier rate. The move, justified as part of Washington’s effort to curb Russia’s oil economy, directly targets India for maintaining energy ties with Moscow.
The new levies will apply to goods imported from India starting August 27, 2025 (Wednesday IST), according to the U.S. Department of Homeland Security.
President Trump defended the decision, saying tariffs were not just trade instruments but also “a means to stop wars.” He added, “It takes two to tango, I always say, and they should meet,” referring to stalled efforts to bring Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky to the negotiation table.
“India Will Withstand Pressure”
Speaking in Ahmedabad on Tuesday while launching multiple projects, PM Narendra Modi stood firm against U.S. pressure, declaring that India’s interests came first.
“For Modi, the interests of farmers, cattle rearers and small-scale industries are paramount. Pressure on us may increase, but we will bear it all,” he said, urging citizens to prioritise swadeshi goods over foreign imports.
Drawing from both Mahatma Gandhi’s call for self-reliance and Lord Krishna’s symbolism of strength, Modi asserted that India’s strength lies in self-sufficiency. He also lashed out at the Congress party, accusing it of making India dependent on imports to facilitate “scams.”
Trump Expands Trade Offensive
The tariff hike on India is part of Trump’s broader campaign targeting nations accused of hurting American technology firms. On Truth Social, the U.S. President lashed out at Digital Services Taxes and regulations introduced in Europe and the UK, warning of “substantial additional tariffs” and export restrictions on U.S. chips unless the measures were withdrawn.
“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” Trump declared. Earlier in June, Trump had already suspended trade talks with Canada in retaliation against Ottawa’s planned digital services tax, which was later rolled back under U.S. pressure.
Vance on ‘Economic Leverage’ Against Russia
Vice President JD Vance reinforced Washington’s hardline stance, telling NBC’s Meet the Press that the U.S. was applying “aggressive economic leverage” against Moscow and its trading partners. “Maybe we will apply additional pressure, or maybe we feel like we are making progress, and we will dial that pressure back,” Vance said, adding that Washington still had “a lot of cards left to play.”
Also Read: PM Modi’s Swadeshi Push Gets Inspiration From Japan’s ‘Nihonsei’ Model?
India Holds Firm on Russian Oil
New Delhi has consistently defended its decision to import Russian crude, citing affordable energy as essential for economic stability. Officials have also stepped up outreach to both Moscow and Beijing, making clear that India will not allow external powers to dictate its energy policies.
As the tariff war intensifies, India’s balancing act between safeguarding domestic interests and navigating global pressure will be tested further in the weeks ahead.
