- The nature of the tariffs will have a spill-over effect on other sectors as well, but India’s economy is strong enough to handle the short-term shock.
- Playing the Pakistan card is nothing but a tactic to corner New Delhi and pressure the Indian Government into settling for a less-than-favourable deal.
- The Indian government has made it clear that it will not compromise on its national interests. It will continue to protect its farmers, MSMEs and strategic autonomy.
He calls himself India’s ‘friend’, but imposes hefty tariffs, threatens further penalties, calls India ‘dead’, and cosies up to our foe! That’s not what friends do.
Tariffs on Indian Exports
After seeing an extended period of calm, India-US ties have hit stormy weather, thanks to President Donald Trump. The Trump administration has imposed a 25% tariff on Indian goods. This is going to impact Indian exports. There is no doubt that textiles, gems, jewellery, auto, agriculture and technology will be hit hard. The nature of the tariffs will have a spill-over effect on other sectors as well. But India’s economy is strong enough to handle the short-term shock. What we need to focus on seriously is diversifying our export destinations and basket. Recent FTAs, such as the one we signed with the UK, will help and are the way to go in the foreseeable future. We must also continue to negotiate with the Trump administration and work out what is best for us.
Criticism of India’s Economy
Apart from the tariffs, Trump has described India’s economy as “dead”. I’m not sure where this is coming from. India has time and again been called a bright spot and is the fastest-growing major economy in the world. So much so that the International Monetary Fund (IMF), just a few days ago, increased India’s projected GDP growth rate to 6.4% from 6.2% in April for 2025-26.
Trump’s rant seems like a desperate attempt to push India to take the bait. India isn’t budging!
Trump’s Pursuit of the Nobel Peace Prize
President Trump seems frustrated with India, and it’s reflected in his statements. It is no secret that Trump is gunning for the Nobel Peace Prize. World leaders, including Israeli PM Benjamin Netanyahu, leaders of the African Union and more recently even Thailand and Cambodia, have sensed it and have praised him for his peace efforts. He even tried taking credit for the ceasefire between India and Pakistan, but New Delhi has time and again said that no foreign entity was involved, and whatever was done was done bilaterally. This stance of India was reiterated by PM Narendra Modi in Parliament a few days ago. This seems to have irritated Trump even more.
Engagement with Pakistan
Hence, he is also trying to play the Pakistan card. He announced that a deal is in the works to explore and produce oil and hydrocarbons in Pakistan. He went on to add, “Maybe someday, India will import hydrocarbons from Pakistan”. It is nothing but a tactic to corner New Delhi and pressure the Indian Government into settling for a less-than-favourable deal.
It has long been discussed by experts and analysts that the so-called oil reserves of Pakistan are far exaggerated and may be even non-existent… So, where is this oil going to come from?
Hillary Clinton, a few years ago, echoed something profound: “Don’t keep snakes in your backyard and expect them to only bite your neighbours”. Unfortunately, the current US administration doesn’t seem to have learnt its lessons. Pakistan is never to be trusted. Al-Qaeda is also a case in point.
The Last Word
India’s response has been one of calm resolve. The government has made it clear that it will not compromise on its national interests, a stance that resonates deeply with the people of India. India’s position is clear – it will continue to protect its farmers, MSMEs and strategic autonomy. India is a rising global power with a vibrant economy and a critical role to play in a multipolar world. It will not be bullied into making decisions that are not in its best interest. This moment, while challenging, is an opportunity for India to further strengthen its economic foundations and forge new partnerships, proving once again that its path to prosperity is its own to chart.
Frank is a Senior Journalist and an International Relations Expert. Views expressed are the author’s own.
Yashwanth A S 
Aayush Pal 
Pritam Sarbabidya