Tariffs as a tool to extort, and slight India’s sovereignty

India should stand up against American bullying. While the US is undoubtedly a significant partner for India, New Delhi should send a clear message that it cannot be taken for granted

- Prabhash Ranjan

US President Donald Trump, in an executive order dated July 31, announced imposing an additional 25% tariff on all Indian imports, on grounds of national emergency and lack of reciprocity. Trump has also said that he would impose an undetermined “penalty” on India for buying oil and weapons from Russia. This latest measure is further evidence of the complete derision with which the Trump administration deals with its partners and with international relations.

Insulting a partner's economy by calling it “dead”, as Trump has done with India, undermines the cardinal principles of mutual respect and sovereign equality that are fundamental to international relations.

It is worth noting that India and the US have been negotiating a bilateral trade agreement since March 2025. Despite the ongoing negotiations, the Trump administration announced reciprocal tariffs on India in April, which were then put on hold, subject to the sides quickly agreeing to an interim trade deal. The two sides have not reached an agreement on an interim trade deal because, reportedly, India is unwilling to open its agricultural and dairy markets. This stance is understandable, as it aims to protect India’s politically-sensitive farming sector. The US announcement of a 25% tariff is a blatant attempt to pressure India into agreeing to a trade deal. As per the executive order, this additional tariff will remain until the two sides agree to a trade deal. The US is trying to negotiate while holding a gun to India’s head.