India-US trade faces a breaking point as U.S. President Donald Trump’s 50% tariff on Indian exports is an economic blackmail. The tariff announced on August 6, 2025, which sparks outrage. The tariff, including a 25% penalty tied to India’s Russian oil imports, threatens to disrupt $129 billion in trade, hitting sectors like textiles and auto parts hard. Indian workers, already grappling with economic uncertainty, now fear for their jobs and futures.
Rahul Gandhi Declared Tariffs as Economic Blackmail
Rahul Gandhi, Leader of Opposition in Lok Sabha, called the move “economic blackmail” in a scathing X post, urging Prime Minister Narendra Modi to resist U.S. pressure. “PM Modi must not let his weakness harm Indian interests,” Gandhi wrote, rallying support across party lines. The tariffs, set to take effect on August 27, have ignited a fierce debate about India’s global trade stance.
India Labelled “Unjust” to Tariffs
India’s Ministry of External Affairs labeled the tariffs “unjustified,” stressing that Russian oil imports ensure affordable energy for 1.4 billion citizens. The ministry noted that the U.S. once encouraged these imports to stabilize global markets, making the tariffs feel like a betrayal. Political leaders, including Shashi Tharoor, criticized the U.S. for sparing the EU similar penalties despite its Russian trade, highlighting a perceived double standard.
As India prepares to counter the economic blow, the nation stands united in defending its interests. The coming weeks will test India-US trade relations, with millions of livelihoods hanging in the balance.
Published in SouthAsianDesk, August 7th, 2025
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