A Blow to Fair Trade and Global Cooperation

07/08/2025

The United States' recent decision to impose an additional 25 percent tariff on Indian goods-raising the total tariff to a staggering 50 percent-is not only an overreach but also an unmistakable affront to the principles of fair and rules-based trade. India has rightly termed this move as unfair, unjustified, and unreasonable, and has made it clear that it will take all necessary steps to protect its national interests. At the heart of this escalation is Washington's disapproval of India's continued imports of Russian crude oil. U.S. President Donald Trump, by signing an executive order to penalize India for this, is attempting to leverage trade as a tool of geopolitical coercion. Such a move ignores the complex realities of global energy markets and undermines the autonomy of sovereign nations to pursue energy security for their populations.
India, home to 1.4 billion people, has consistently made it clear that its energy decisions are based on market dynamics and strategic national considerations, not on ideological alignment or external pressure. Moreover, India is not alone in maintaining energy ties with Russia-several other major economies have adopted similar stances based on their domestic needs. Singling out India in this context is both discriminatory and hypocritical.Furthermore, this tariff escalation comes at a time when global economies are striving for post-pandemic recovery and greater economic integration. Protectionist actions such as this risk damaging decades of progress and trust between two of the world's largest democracies. The decision to weaponize trade in this manner sends a chilling signal-not just to India, but to all nations seeking balanced, multilateral engagement with the U.S.India's response has been measured but firm. The statement from the Ministry of External Affairs underscores the government's resolve to defend its economic sovereignty and ensure its citizens are not made to pay the price for geopolitics they have no control over. It is crucial that India now explore reciprocal measures, while simultaneously engaging through diplomatic and legal channels, including the World Trade Organization (WTO), to challenge the unilateralism of such punitive tariffs.
This episode must also serve as a wake-up call for India to accelerate its trade diversification, reduce dependence on any one market, and strengthen regional and multilateral alliances. The future of global trade must rest on the pillars of equity, mutual respect, and cooperation, not coercion and selective penalization. The United States must recognize that such heavy-handed tactics could backfire, damaging not only bilateral ties with India but also its standing as a leader of the free world. As India stands firm, it does so not just for itself, but for all nations that believe in a fairer, multipolar global order.

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