Trump's Tirade, India's Reply, Political Plot: Key Points In Massive Debate Over Trade Deal
Ahead of the August 1 deadline, US President Donald Trump announced a 25% tariff on Indian goods and a penalty, even as negotiations between Washington and New Delhi are ongoing.
Trump's announcement drew ire from opposition parties, but the Government of India stated that it would study the implications of the tariff. Experts have predicted a very limited impact, suggesting that the tariff blow could lower India's GDP by up to 30 basis points. Sectors such as pharmaceuticals, gems and jewellery, textiles, and automobiles are expected to be affected the most. Stock markets in India, which had been trading in a range over the past few days, did not witness any knee-jerk reaction, although the benchmark indices ended in the red.
Trump has linked his tariff decision to India's purchase of Russian oil and its standing in BRICS, which Washington sees as an anti-US alliance. However, he changed his tune later to say he does not care what India does with Russia.
Even though tariffs have been imposed, Trump has kept his doors open for negotiations and hinted at a possible deal by the end of this week.
What Trump Said About India?
While he continued his tirade, the US President expressed willingness to negotiate a deal with India.
'They have one of the highest tariffs in the world. Now, they are willing to cut it very substantially. But we will see what happens. We are talking to India now. We will see what happens. It doesn't matter too much whether we have a deal or we charge them a certain tariff. But you will know at the end of this week," he said in the White House on Wednesday.
Trump has also called India's economy 'dead" and said both New Delhi and Moscow can bring down their economies together.
How India Responded
Shortly after Trump's announcement, India said it is studying the implications of the tariff. While maintaining that both countries are engaged in negotiations, the government said it will take all steps necessary to secure the national interest.
The government also said it attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.
In the Parliament, Union Minister of Commerce and Industry Piyush Goyal made a statement, 'We will take all necessary steps to safeguard our national interest."
Politics Over Tariffs Peak
The opposition saw Trump's announcement as an opportunity to corner the government. Rahul Gandhi, Leader of Opposition in the Lok Sabha and Congress MP, echoed Trump and said the Indian economy is a dead economy.
'Yes, he is right. Everybody knows this except the Prime Minister and the Finance Minister. Everybody knows that the Indian economy is a dead economy. I am glad that President Trump has stated a fact," Gandhi said when asked to comment on Trump's dead economy remark.
While the Rae Bareli MP attacked the Narendra Modi government, two of his party colleagues– Shashi Tharoor and Rajiv Shukla – called out Trump for his decision.
Tharoor, who has gone out of his party's line to back the government on some issues like Operation Sindoor, said India must not 'buckle under" and negotiate hard with the United States.
But this time, Shukla also joined Tharoor on the issue and said the government considers Trump a friend, but he has slapped us.
'This is a really wrong step by the US. The government considers Trump a friend, but he has actually slapped us; Indian businessmen will suffer due to this. We will raise all issues in Parliament…When there is so much friendship (between India-US_, then why is Donald Trump troubling India?" Shukla said.
Mamata Banerjee's Trinamool Congress also hit out at the government over 'failure" of India's foreign policy and diplomacy.
'We were shown that Trump is a great friend of PM Modi, but the decisions coming from the other side are not good for India's prestige and self-respect," TMC leader Kunal Ghosh said.
On the other hand, the ruling BJP and its allies targeted the opposition for taking on the government over Trump's tariffs.
Former union minister and BJP MP Anurag Thakur said, 'Leader Opposing Bharat, LoB, Rahul Gandhi's job is only to oppose India. Anyone from around the world makes an anti-India statement, Rahul catches hold of it and starts speaking without thinking."
Echoing a similar reaction, Shiv Sena MP Milind Deora said, 'When a country like the US imposes tariffs on other countries, the country unites, and the opposition stands in support of the government. In India, unfortunately, there are still some people in the opposition who prefer to rejoice and celebrate temporary setbacks. I can only hope and pray that they will mature, grow up and learn to put country before politics."
(With inputs from agencies)
About the Author
Saurabh Verma
Saurabh Verma covers general, national and international day-to-day news for News18.com as a Senior Sub-editor. He keenly observes politics. You can follow him on Twitter --twitter.com/saurabhkverma19
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July 31, 2025, 22:08 IST
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