Trump Announces 25% Tariffs and Penalty on India Despite ‘Our Friend’ Remark
New tariffs intensify trade friction between the US and India.
Trump Imposes 25% Tariffs on Indian Goods, Raising Global Alarm
Former U.S. President Donald Trump announced a sweeping 25% tariff on Indian goods during a rally in Florida. Although he called India “our friend,” Trump justified the move as necessary to “defend American jobs and industries.” The decision sparked immediate concern across global trade markets as investors worried about higher costs and unpredictable supply chains. Analysts warned the tariffs might affect consumer prices, disrupt partnerships, and trigger retaliatory action from India.
India Slams Decision, Seeks Urgent Talks
The Indian government quickly condemned the move, describing it as “damaging and unfair.” Commerce Minister Piyush Goyal said India would request immediate consultations with Washington. “We value our partnership with the United States, but this measure seriously threatens Indian exporters,” Goyal explained. Key industries like textiles, pharmaceuticals, and agriculture could face severe disruption, with many small businesses warning they might have to cut jobs or reduce production if the tariffs remain in place.
Trade and Business Groups React
Indian exporters expressed frustration, saying they could not easily absorb the added costs. “Margins are already thin, and this will push us over the edge,” said a garment exporter from Tirupur. In the United States, importers warned of rising consumer prices and fewer product options. “We are battling inflation, and tariffs will worsen the problem,” a U.S. retail group spokesperson noted. Stock market indices dipped slightly, reflecting the growing sense of uncertainty among global investors.
Strategic Partnership Faces Strain
Beyond trade, experts warned the dispute could undermine years of strengthening strategic ties between India and the United States. Both nations have deepened defense, technology, and energy cooperation recently. However, foreign policy analysts suggested India might turn toward other allies like the European Union or Southeast Asian nations if tensions rise. “This is about trust as much as economics,” explained former Indian diplomat Kanwal Sibal. “Prolonged disputes can push India to diversify away from the U.S. market.”
Businesses and Policymakers Urge Diplomacy
Business lobbies in both countries pressed leaders to engage in negotiations quickly. Several multinational firms with operations in India said they would pause expansion plans until the dispute is resolved. American exporters of agricultural goods also feared potential retaliatory duties from India. “Nobody benefits from a prolonged tariff war,” an industry analyst in Washington warned. “Both sides must return to the table before the situation escalates further.”
