In a dramatic escalation of trade tensions, US President Donald Trump has announced a 25% tariff on Indian imports, triggering a political storm in New Delhi. While the Indian government has not officially responded to this development, the Indian National Congress has wasted no time in launching a scathing critique of Prime Minister Narendra Modi's foreign policy, especially his close rapport with the former US President.

Taking to social media platform ‘X’ (formerly Twitter), the Congress party declared that India is now paying the price for Modi’s personal diplomacy. The party recalled how Prime Minister Modi had "enthusiastically hugged" Trump, even going so far as to campaign for him at the Howdy Modi event in Houston in 2019. “Modi campaigned for Trump, hugged him, clicked photos, and in the end, Trump slapped tariffs on India. India's foreign policy has completely failed,” read the Congress party’s statement in Hindi.

The development marks a significant downturn in India-US trade relations, which had shown signs of improvement in recent months following a fifth round of trade negotiations that concluded in Washington just last week. Another Indian delegation is scheduled to travel to the US for further discussions, but Trump’s tariff decision has cast a shadow over those prospects.

Trump’s Justification for Tariffs

In a post on Truth Social, his social media platform, Trump outlined his rationale for the steep 25% tariffs on Indian goods, set to take effect from August 1, 2025. According to Trump, India has consistently placed high tariffs and “obnoxious” non-monetary trade barriers on American goods, making bilateral trade heavily skewed in India’s favour.

“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world,” Trump wrote. He further added, “They have always bought a vast majority of their military equipment from Russia and are one of Russia’s largest buyers of ENERGY, along with China.”

Trump indicated that India’s continued military and energy engagements with Russia are unacceptable in the wake of the ongoing Russia-Ukraine war, and are in contradiction to global efforts to isolate the Kremlin economically.

Congress Accuses Modi of Weak Diplomacy

The Congress party framed Trump’s announcement as a direct result of Modi’s foreign policy miscalculations, alleging that the Prime Minister’s personalized style of diplomacy — including high-profile events with foreign leaders — has failed to deliver tangible results.

Congress President Mallikarjun Kharge and senior party leader Rahul Gandhi were among those who amplified the criticism, calling the new tariff regime a reflection of “Modi’s flawed prioritization of personal optics over strategic substance.”

“Modi invested heavily in Trump. From massive rallies in Houston to personalized PR campaigns, all for this betrayal. Where is the return on that investment? This is not friendship, it is diplomatic naivety,” said a senior Congress spokesperson during a media interaction.

Silence from the Indian Government

So far, the Indian government has not released an official response to Trump’s tariff declaration. According to officials familiar with the matter, internal discussions are ongoing within the Ministry of External Affairs (MEA) and the Ministry of Commerce and Industry on how to address the situation without derailing ongoing trade negotiations.

Trade analysts, however, suggest that India may choose to retaliate with its own tariff hikes or seek a negotiated settlement, especially since bilateral trade remains crucial for both countries. “The current government is walking a tightrope between maintaining strategic autonomy and sustaining economic partnerships,” said a policy expert.

Broader Implications of the Tariff Move

Trump’s move is likely to impact several sectors of the Indian economy, particularly pharmaceuticals, textiles, steel, and information technology, which have traditionally enjoyed a large export volume to the United States. Industry leaders are concerned that these tariffs could shrink profit margins and result in job losses.

Further, this tariff move also raises questions about India’s defence procurement strategy, especially since over 60% of its military hardware continues to be sourced from Russia. New Delhi’s slow diversification away from Russian arms — despite initiatives such as Make in India — now faces global scrutiny.

Some experts argue that India’s energy diplomacy has also become a geopolitical liability. After the Ukraine war began, India ramped up its purchases of discounted Russian crude, leading to repeated criticisms from the West. Trump's penalty seems to target this energy linkage, sending a clear message to countries trying to maintain neutral economic relations with Russia.

A Challenge for India’s Foreign Policy Establishment

Trump’s tariff decision has put India’s strategic and economic diplomacy under the scanner, just months after Modi secured his third term as Prime Minister. The move is seen as a challenge to India’s efforts to balance its partnership with the United States while maintaining traditional ties with Russia.

With Trump likely to contest the 2026 US presidential elections, some observers fear this could be a preview of the policy direction under a potential second Trump presidency.

“There is an element of unpredictability with Trump. But even if Biden returns, these tariffs may remain if they serve US domestic political and economic interests,” said an international trade lawyer.

Conclusion

The Congress party’s strong condemnation of Modi’s diplomatic handling comes at a time when India is navigating an increasingly complex global landscape, juggling multiple alliances, energy needs, and security imperatives. While the true economic impact of the 25% tariff will unfold over the coming months, the political fallout is immediate, with opposition parties finding fresh ammunition to target the government.

As the Modi administration prepares its response, all eyes will be on how it balances national interest with international pressure, particularly from an increasingly protectionist United States. In the short term, India’s exporters, diplomats, and trade negotiators face an uphill task in salvaging what appears to be an unexpected and high-stakes economic jolt.

In the words of a senior Congress leader: “Modi bet on Trump. Now the country is paying the price.”

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