India Slams US Tariffs as 'Economic Blackmail'

The Congress party has criticized the US action of imposing a 25% tariff on Indian goods as "unjust" and "economic blackmail." The party has called for a comprehensive reset of India's foreign policy and administration, citing Prime Minister Narendra Modi's "personalized" and "headline-grabbing style of huglomacy" as an "abysmal failure." The party has also recalled past events under the Modi government, including a "Howdy Modi" event in Houston and a "Namaste Trump" event in Ahmedabad, where Modi declared "Ab ki Baar, Trump Sarkar."

In a move that has sparked criticism from India's Congress party, the United States has imposed a 25% tariff on Indian goods. The tariffs, announced by President Donald Trump, are part of a broader strategy to pressure Russia to cease hostilities in Ukraine by targeting countries that purchase Russian oil [1].

The tariffs, which go into effect on August 1, are an additional 25% penalty on top of the existing 25% tariff imposed on India this month. This decision follows a meeting between Russian and U.S. officials, which did not yield a breakthrough, and comes days before a White House deadline for Russia to reach a peace deal with Ukraine [1].

The Indian government has strongly condemned the tariffs, describing them as "unfair, unjustified, and unreasonable." The government spokesperson stated that India's imports are based on market factors and are necessary to ensure energy security for its 1.4 billion people [1].

Congress MP Gaurav Gogoi has criticized the tariffs, labeling them "unfortunate" and expressing concern over the dialogue between President Trump and the Pakistani government. Gogoi also highlighted the potential decline in U.S.-India relations due to a trade deal between Pakistan and the U.S. [2].

The tariffs come as a surprise to Indian officials who had expected a favorable deal with the U.S. after five rounds of negotiations. The talks collapsed due to a mix of political misjudgment, missed signals, and bitterness [3]. The Congress party has called for a comprehensive reset of India's foreign policy and administration, citing Prime Minister Narendra Modi's "personalized" and "headline-grabbing style of huglomacy" as an "abysmal failure" [3].

The tariffs could have significant economic implications. If secondary sanctions lead to a 10% drop in Russia's oil exports, that could increase the price of Brent crude oil by $6 from its current level of about $71 per barrel [1]. A 20% drop could cause prices to spike by $11, potentially raising the prospects of a recession in the U.S. and many other economies around the globe [1].

In response to the tariffs, India has hinted at retaliation and accused the U.S. and the EU of hypocrisy for continuing to purchase goods from Russia while criticizing India [1]. The U.S., however, has focused on India as a key target for its strategy to pressure Russia [1].

References:
[1] https://www.politico.com/news/2025/08/06/us-to-hike-tariffs-on-india-to-50-percent-over-russian-oil-purchases-00495411
[2] https://economictimes.indiatimes.com/news/politics-and-nation/more-tragic-is-dialogue-between-trump-pak-govt-gaurav-gogoi-on-25-tariffs-on-india/articleshow/123015817.cms
[3] https://www.reuters.com/world/india/missed-signals-lost-deal-how-india-us-trade-talks-collapsed-2025-08-06/