New Delhi [India], July 31: Former Union Home Minister and senior Congress leader P Chidambaram on Thursday launched a scathing attack on the United States’ decision to impose a 25 percent tariff on all Indian exports, effective August 1, and an additional penalty for India’s purchase of Russian oil. Taking a veiled dig at Prime Minister Narendra Modi, Chidambaram termed the move a “big blow” to India’s trade with the US and a “clear violation” of World Trade Organization (WTO) rules.
In a post on X, Chidambaram wrote, “The 25 per cent tariff on all Indian exports to the United States PLUS penalty for buying Russian oil is a big blow to India’s trade with the U.S. ‘Dosti’ is no substitute for diplomacy and painstaking negotiations. The tariff imposed by the U.S. is a clear violation of the WTO rules.”
He further questioned PM Modi’s statement during his Washington visit on February 14, where the Prime Minister had coined the term “MEGA” by combining India’s “Viksit Bharat” vision (Make India Great Again – MIGA) with the US slogan “Make America Great Again” (MAGA), signifying a “MEGA” partnership for prosperity. Chidambaram asked, “What happened to MIGA + MAGA = MEGA?”
The US President Donald Trump, in a social media post on his Truth Social Account, officially announced the 25 percent tariffs on India starting August 1. Trump justified the tariffs by stating that India’s “Tariffs are far too high, among the highest in the World,” and that they have “the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
He also explicitly linked the additional penalty to India’s ongoing trade with Russia. “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”, Trump’s post read.
The Indian government has stated that it has taken note of the US President’s statement and is studying its implications. It reiterated its commitment to a fair, balanced, and mutually beneficial bilateral trade agreement and affirmed that it would take all necessary steps to safeguard national interests, including those of farmers, entrepreneurs, and MSMEs.