India Defies U.S. pressure, Vows sovereignty over trade amid hostile tariff war

Department of Research, Studies and International News -11-08-2025

In a striking rebuke to U.S. economic aggression, Indian Prime Minister Narendra Modi has reaffirmed New Delhi’s commitment to independent trade policy, signaling India’s readiness to face the economic fallout of resisting Washington’s coercive tactics. Modi’s bold stance comes in response to President Donald Trump’s latest move to impose a punishing 50% tariff on Indian exports, an action widely seen as a retaliatory strike over India’s continued energy cooperation with Russia.

The U.S. decision, unveiled through an executive order this week, slaps an additional 25% tariff on Indian goods, on top of an earlier 25% hike, under the pretext of penalizing India for importing Russian oil. Trump accused New Delhi of “funding Russia’s war machine,” a claim that India’s government forcefully rejected. India’s Ministry of External Affairs labeled the tariff hike as “unfair, unjustified, and unreasonable,” highlighting the hypocrisy of Washington’s selective outrage, as other major importers of Russian energy, like China and Turkey, face no such penalties.

Modi, without naming Trump directly, addressed the issue in a nationwide speech, making it clear that India would not bow to foreign pressure, especially when the livelihoods of its farmers, fishers, and herders are at stake. “India will never compromise on the interests of its farmers, livestock rearers and fisherfolk,” he declared. “And I know that I will personally have to pay a very heavy price for this, but I am ready.”

The U.S. has long pressed India to accept genetically modified American crops and remove duties on agricultural imports, but New Delhi remains firm. Officials describe these as non-negotiable issues, defending India’s right to protect its domestic industries and food sovereignty.

Trade talks between the two nations have now hit a critical impasse. Unless a resolution is reached before August 27, the full 50% tariffs will take effect, threatening to derail decades of bilateral progress and souring what had once been promoted as a “strategic partnership.”

Indian opposition leaders have joined the chorus condemning U.S. economic imperialism. Congress Party President Mallikarjun Kharge emphasized that India’s long-standing policy of strategic autonomy cannot be compromised under external duress. “Any nation that arbitrarily penalizes India for our independent foreign policy does not understand the steel frame India is made of,” he said.

Meanwhile, opposition MP Tejashwi Yadav criticized Modi’s earlier warm relations with Washington, accusing the Prime Minister of “dancing to America’s tune” and now facing the backlash of misplaced trust.

Public opinion has swiftly turned against the United States. Indian media outlets, once celebrating the Modi-Trump camaraderie, now echo deep resentment. A scathing editorial in The Hindu affirmed: “India’s sovereignty is non-negotiable and its foreign policy choices cannot be manipulated.”

Political analyst Pratap Bhanu Mehta went further, describing Trump’s actions as “imperialism on steroids,” warning that submission to such an aggressive U.S. posture would be a betrayal of India’s national dignity and strategic interests.

The glaring inconsistency in U.S. policy is hard to ignore. While India is punished for buying Russian oil, other strategic players like China are spared, fueling accusations that Washington’s decisions are rooted less in principle and more in geopolitical manipulation.

Experts agree that the tariffs could severely impact India’s economy, particularly export-dependent industries like textiles, auto components, gems, and steel. According to SC Ralhan, head of the Federation of Indian Export Organisations, nearly 55% of India’s exports to the U.S. are now at risk, jeopardizing tens of thousands of jobs and billions in revenue.

Still, many in India’s policy circles are advising a calm, strategic response. Prerna Prabhakar, a senior analyst at a Delhi think tank, acknowledged the U.S. as a key market but argued that India should use this challenge to broaden its global outreach. Rather than retaliate with higher tariffs, she proposed reducing India’s own trade barriers to improve competitiveness and deepen economic ties with partners in the EU, Africa, and Latin America.

“If India wants to counterbalance U.S. pressure, it must become more globally integrated, not less,” Prabhakar said. “This is an opportunity to reassert our independence, not just politically, but economically.”

As the tariff standoff escalates, New Delhi is unlikely to bend. By defending its right to choose its partners, be it Russia, China, or others, India is sending a clear message: it will not serve as a pawn in Washington’s power games.