New Delhi: The United States’ decision to raise tariffs on Indian goods to an unprecedented 50 per cent has sparked sharp reactions in New Delhi, with former NITI Aayog CEO and ex-G20 Sherpa Amitabh Kant calling it a “wake-up call” for the nation. Far from yielding to external pressure, Kant urged India to embrace bold, once-in-a-generation reforms and to diversify its export markets for long-term resilience.
The additional duties come after US President Donald Trump slapped a fresh 25 per cent levy on Indian imports over New Delhi’s continued purchase of Russian oil, bringing the total tariff burden to 50 per cent. Trump had earlier announced reciprocal tariffs on over 70 countries, which came into effect on August 7.
In a pointed post on X, Kant termed the move “ironical,” noting that Washington continues to negotiate actively with both Russia and China even as Beijing remains Moscow’s largest oil buyer while India is being singled out for punitive measures. “The irony is striking: the U.S. engages Russia and China, yet chooses to target India with tariffs instead,” he remarked.
Kant stressed that the issue is not about oil alone, but about India’s right to safeguard its energy security and strategic autonomy. He recalled that India has withstood global pressure in the past and insisted this moment should be no different. “Let us be clear, this is not about Russian oil. It is about India’s strategic space, which must never be compromised,” he said.
The government has already denounced the tariff hike as “unfair, unjustified, and unreasonable,” warning of major repercussions for industries such as textiles, marine products, and leather exports. With this action, India now faces the steepest US tariff rate alongside Brazil, both locked at 50 per cent.
Diplomatic sources revealed that US and Russian officials had recently discussed potential energy deals during talks aimed at coaxing Moscow towards peace in Ukraine. These discussions, paired with Washington’s willingness to ease some sanctions, underline the complexities of global trade negotiations making India’s penalisation appear even more disproportionate.
Meanwhile, Trump has threatened additional sanctions on Russia unless visible progress is made in peace talks and hinted at harsher trade measures against India. At the same time, Washington and Beijing have been quietly holding high-level trade talks to resolve disputes over export controls on critical goods, including rare earths. Recent data shows China’s exports to the US plunged by 34.5 per cent in May, the sharpest fall since the COVID-19 pandemic disrupted global supply chains in 2020.
Kant concluded that instead of viewing the tariffs as a setback, India should seize the moment to push ahead with transformative reforms and reduce dependence on a single export market. “Global headwinds must not intimidate us. They should galvanise us into building strength, resilience, and diversity,” he emphasised.