The announcement of a 25% tariff on Indian goods by former US President Donald Trump has triggered reactions from both the ruling Bharatiya Janata Party (BJP) and the opposition in India. The tariffs, set to take effect on August 1st, have sparked concerns about the impact on bilateral trade relations between the two countries.
A BJP MP, Praveen Khandelwal, stated that the government would take cognizance of the situation. He said that a detailed examination of the issue is required to fully understand the impact of the tariffs. According to Khandelwal, the matter is scheduled to be addressed on August 2nd. He also expressed hope that the tariffs might be withdrawn after a review of their impact on Indian trade. Khandelwal termed the development as "unfortunate" in his personal opinion.
The opposition Congress party has been sharply critical of Prime Minister Narendra Modi's handling of foreign policy and his relationship with Trump. Congress General Secretary Jairam Ramesh said that the "taarif" (praise) between Modi and Trump has meant little, referring to the "Howdy Modi" event and other instances of public camaraderie. Ramesh argued that Modi's attempts to appease Trump by remaining silent on various issues, such as Trump's claims of stopping Operation Sindoor and the US's support for financial packages to Pakistan, have not yielded any special treatment for India. He suggested that Modi should take inspiration from former Prime Minister Indira Gandhi and stand up to the US President.
Another Congress MP, Chamala Kiran Kumar Reddy, said that despite Modi's claims of friendship with Trump, the US President's agenda to impose tariffs on India was clear. He demanded that the government quickly negotiate a trade deal with the US to mitigate the impact on exports and the economy. The Congress party also accused PM Modi of pursuing a failed foreign policy built on personal diplomacy. They stated that the country is paying the price for Modi's "friendship" with Trump.
Congress MP Manikam Tagore described the development as the "next level of the failure of the government of India". He argued that the government's defensive approach in negotiations with the United States led to this outcome.
These tariffs come amidst ongoing trade negotiations between India and the US. Trump's announcement included a reference to India's high tariffs and its procurement of military equipment and energy from Russia.
The imposition of tariffs has raised concerns about potential trade wars and the impact on the Indian economy. While the BJP has called for a study of the situation before making a full statement, the Congress has used the opportunity to attack Modi's foreign policy and his relationship with the US President. The coming days will be crucial in determining how the Indian government responds to these tariffs and what steps it takes to protect its trade interests.