Trump's tariffs a 'wake-up call' for India, says ex-NITI Aayog CEO

Former NITI Aayog CEO Amitabh Kant on Wednesday said that the fresh tariffs imposed by US President Donald Trump must serve as a “wake-up call” for India to accelerate structural reforms and safeguard its strategic autonomy.

“Trump’s tariffs must be a wake-up call for India. The irony is striking: the US is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil,” Kant said in a post on X.

Calling the issue one of “energy security and strategic autonomy”, Kant stressed that India must not compromise its long-term interests under external pressure.

“India has, on numerous occasions, refused to yield to global pressure. This moment should be no different,” he noted.

He further said Washington’s move should not be seen merely as an economic challenge but also as an opportunity to reset priorities.

“Rather than intimidate us, these global headwinds must galvanise India into bold, once-in-a-generation reforms, while also diversifying our export markets to secure long-term growth and resilience,” Kant said.

His remarks come as Indian goods entering the US will now attract a 50 per cent tariff, as the additional 25 per cent levy announced by Trump -- penalising India for its purchase of Russian crude oil -- takes effect from Wednesday.

The Trump administration has accused New Delhi of imposing a so-called “Maharaja tariff,” contributing to Washington’s USD 40-billion trade deficit with India, and of indirectly financing Russia’s war in Ukraine.

India’s crude oil imports from Russia surged after the conflict began, with government data showing purchases of around 1.8 million barrels per day in 2024, worth approximately USD 49 billion.

The tariff escalation comes despite five rounds of trade talks between the two sides this year. The India-US Bilateral Trade Agreement, announced in February, aimed to double bilateral trade to USD 500 billion by 2030.

A sixth round of talks was scheduled in New Delhi on August 25, but the US delegation postponed the visit amid mounting tensions over tariffs and Russian oil imports.