The relationship between the United States and India has taken a tense turn as former U.S. President Donald Trump imposed an additional 25% tariff on Indian goods in response to India's continued import of Russian oil. This move effectively doubles the tariff rate to 50% on most Indian exports to the U.S. and has elicited strong reactions from both political spheres.

Congress leader Rahul Gandhi has strongly criticized this decision, calling it "economic blackmail" and an attempt to strong-arm India into an unfair trade deal. Gandhi urged Prime Minister Modi to prioritize the interests of the Indian people and not succumb to pressure. He believes the tariff hike is a tactic to bully India into accepting unfavorable trade terms.

The Ministry of External Affairs (MEA) has also responded with a firm statement, deeming the U.S. action "unfair, unjustified, and unreasonable". The MEA reiterated that India's oil imports are driven by market factors and aimed at ensuring the energy security of its 1.4 billion citizens. The ministry asserted that India would take all necessary measures to protect its national interests.

The decision to impose additional tariffs stems from the U.S.'s concern that India's purchase of Russian oil is helping to finance Russia's war against Ukraine. Trump has expressed his disapproval of countries that he believes are "fueling the war machine". However, India has defended its position, emphasizing that its energy needs are paramount and its imports are based on market considerations.

The increased tariffs are expected to significantly impact several Indian export sectors, including textiles, marine products, and leather. These sectors, many of which are led by Micro, Small, and Medium Enterprises (MSMEs), could face considerable challenges. India now faces the highest tariff rate in the U.S. market, placing it at a competitive disadvantage compared to other nations.

Despite the trade tensions, the Indian government is reportedly exploring potential tariff concessions, increased purchases of U.S. liquefied natural gas (LNG) and defense equipment, and other offers to put on the negotiating table.

This situation has sparked a debate about potential double standards, with India accusing the U.S. and the European Union of importing substantial volumes of goods, including energy, from Russia while simultaneously penalizing India. Some experts suggest that the U.S. move leaves room for trade deal negotiations and talks.

The tariffs are scheduled to take effect within 21 days from August 6, 2025. Trump's executive order includes a provision that allows for modifications if affected countries take steps to align with the U.S. on national security, foreign policy, and economic issues. This suggests a willingness to negotiate based on international responses and cooperation.