Congress leader Jairam Ramesh on Wednesday strongly criticized US President Donald Trump’s decision to impose a 25% tariff and additional penalties on India effective August 1, calling it a “huge setback” for Prime Minister Narendra Modi and the country. He said the US move amounts to “blackmail” and warned that it would adversely impact India’s economy.

In an interview with ANI, Ramesh stated:

“This is a huge setback to PM Modi and India… Taareef hi tareef mein tariff lag gaya. There were no gains from Howdy Modi and Namaste Trump. This is blackmail by the US, and the PM should not be scared of this challenge.”

Congress Questions Modi’s Foreign Policy

The Congress leader accused the Prime Minister of failing to protect India’s economic interests despite his public camaraderie with Trump.

“Modi campaigned for Trump, hugged him enthusiastically, got photos clicked and trended them on social media. In the end, Trump imposed tariffs on India. The PM has suffered a political setback, and our economy has suffered a setback today,” he added.

Ramesh also criticized the sudden halt of Operation Sindoor, questioning the government’s silence on the matter.

Trump’s Announcement and Its Impact

US President Donald Trump, in a Truth Social post, justified the tariffs by accusing India of high trade barriers and purchasing most of its military and energy supplies from Russia amid the Ukraine conflict.

“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st,” Trump posted.

The tariffs, coupled with penalties, are expected to impact India’s engineering, pharmaceuticals, and other business industries.

India’s Energy Choices Under Scrutiny

Ramesh firmly asserted that Trump cannot dictate India’s energy purchases:

“US President Trump cannot decide where we will buy oil and other things from. The country’s energy policy will be decided by India alone.”

Government’s Response

The Ministry of Commerce and Industry issued a statement saying that India has taken note of Trump’s announcement and is studying its implications. The ministry reiterated India’s commitment to securing its national interest while negotiating a fair trade agreement with the US.

“The Government attaches utmost importance to protecting the welfare of our farmers, entrepreneurs, and MSMEs. We will take all necessary steps to secure our national interest,” the statement read.

Stalled Trade Negotiations

The tariff announcement comes just two days before the deadline amid stalled talks over an interim trade deal. The US has been pressing India to open its agriculture and dairy sectors, allow remanufactured goods, accept genetically modified feed, and adopt US digital trade and product standards—demands India has been reluctant to agree to.