HomeInternational TaxationTrump’s 25% Tariff + Penalty Is Blackmail — India Must Retaliate, Says...

Trump’s 25% Tariff + Penalty Is Blackmail — India Must Retaliate, Says Ex-Finance Chief

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In a scathing response to U.S. President Donald Trump’s bombshell move to slap 25% tariffs plus penalties on Indian imports, former Finance Secretary Subhash Chandra Garg has called for a complete breakdown in trade negotiations with the United States, terming the tariff threat as nothing short of economic arm-twisting.

Speaking in an exclusive televised broadcast, Mr. Garg warned that the United States is attempting to strong-arm India into accepting lopsided trade terms, including zero or low tariffs on U.S. agricultural goods, defense equipment, and energy exports—a proposal he said would amount to India surrendering its economic sovereignty.

“This is not a negotiation; it’s coercion. India must not panic. These are terms no sovereign nation should accept,” Mr. Garg declared.

Calling Trump’s tariff announcement a “pressure tactic”, he said the United States is trying to push its exports into India by manufacturing a crisis, while shifting the economic burden to Indian exporters and ultimately, American consumers.

“We should call off the negotiations with the United States now and wait for some sanity to come from that side,” he asserted in a bold statement that’s expected to reverberate through diplomatic and trade circles.

Mr. Garg also advised India to hold firm on its trade positions, refusing to slash export prices to absorb U.S. tariffs. “Let American buyers pay more. Let them feel the impact of Trump’s economic aggression,” he said, stressing that any backtracking would be interpreted globally as India buckling under U.S. pressure.

Labeling a potential deal with the Trump administration as “impossible”, he cautioned that continued dialogue under these threats would only erode India’s negotiating power and international stature.

India’s Response in the Spotlight

Trump’s decision to impose steep tariffs on Indian goods—amid accusations that India is “funding Russian aggression”by importing discounted crude—has triggered a geopolitical and economic firestorm. With trade talks already on edge, Mr. Garg’s comments could mark a turning point in India’s diplomatic strategy.

The former Finance Secretary’s remarks are seen as a clear signal to Washington: India will not be bullied into trade concessions—even if it means walking away from the table.

Read More: Trump scraps US $800 de minimis exemption: A major blow to India’s e‑commerce exports

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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