India slams US tariff hike as ‘unjustified and unfair’, vows decisive response

In a sharply worded diplomatic offensive, India on August 6 condemned the United States’ decision to double tariffs to 50% on Indian goods as "unfair, unjustified and unreasonable", vowing to take "all actions necessary" to safeguard its national interests. The move marks the most significant rift in Indo-US relations since Washington sanctioned India over its nuclear tests in 1998.

The escalation comes amid rising tensions over India’s continued energy trade with Russia, which has drawn repeated criticism from Western powers. The Ministry of External Affairs (MEA) made it clear that India’s oil imports from Moscow are guided by “market factors” and the overriding need to ensure “energy security for 1.4 billion people.”

“The United States has in recent days targeted India’s oil imports from Russia. It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” said MEA spokesperson Randhir Jaiswal in a statement.

India also accused Washington of hypocrisy, pointing out that both the US and the European Union continue to do business with Russia. “Where the US is concerned, it continues to import uranium hexafluoride for its nuclear industry, palladium for its EV sector, and Russian fertilizers and chemicals. These are not even vital national compulsions,” the statement noted.

This is the second time in three days that New Delhi has hit back at Washington. On August 4, after US President Donald Trump — seeking re-election — warned of a “substantial” tariff hike in retaliation for India’s Russian oil trade, the MEA had described the rhetoric as baseless and “targeted pressure.”

The government is now mobilizing a multi-pronged response. Sources told this publication that India is exploring countermeasures, including domestic subsidies to offset the impact of the tariff hike and preserve the global competitiveness of Indian exports.

Simultaneously, diplomatic outreach is being intensified, with the Indian mission in Washington DC preparing to engage US policymakers in a final effort to defuse the standoff.

India has a three-week window to negotiate with American interlocutors before the revised tariff regime comes into effect. High-level backchannel discussions are expected in the coming days, with New Delhi keeping the door open for a negotiated resolution.

Since the Russia-Ukraine war began, Moscow has earned €923 billion in fossil fuel revenues, of which over €212 billion came from EU countries. India has consistently maintained that its trade decisions are based on strategic autonomy and national interest — a position now at the heart of its increasingly assertive foreign policy posture.

With the world’s two largest democracies now at odds, the diplomatic fault lines signal a potential reset in a relationship long hailed as a strategic partnership.