Indian PM Faces Opposition Anger After Trump Sets A 25 Percent Trade Tariff

JAKARTA - Indian opposition parties criticized the government by calling the 25% tariff threat from US President Donald Trump a diplomatic failure for New Delhi.

The rupee currency reportedly plummeted and the stock index slumped in response to the news.

The 25% rate will put India tougher than any other major trading partner. It also threatens to thwart negotiations that have been going on for months, weakening one of Washington's strategic partners in the region, which is seen as China's balancing.

Trump said the import rate of goods from India would take effect from Friday, August 1, in addition to the undisclosed fines for transactions with Russia and its involvement in the group of BRICS countries, but later said trade negotiations were still ongoing.

In response to this, Prime Minister Narendra Modi's administration said it was studying the implications of Trump's statement and was committed to securing a fair trade deal.

"This development reflects the widespread collapse of foreign policy under Modi's rule," a lawmaker from the main opposition Congress said in a notice requesting discussion of the matter in the lower house.

The debate will focus on "the government's economic and diplomatic failures in preventing the imposition of US tariffs by 25% plus penalties against Indian exports," he continued.

The Minister of Trade, Piyush Goyal, is expected to brief the lower house on Thursday evening, according to a television news channel.

India has accepted an "unfair agreement", said Priyanka Kishore, an economist at Asia Decoded.

"Although further trade negotiations could lower tariffs, it seems unlikely India will get much better results than neighboring countries in the east."

This will raise questions about India's relative appeal as a goal of China plus one, referring to supply chain diversification strategies through manufacturing outside China to reduce geopolitical and operational risks.

However, trade negotiations continue, Trump said on social media, as countries face a deadline for Friday, August 1, to reach a reciprocal rate agreement or US tariffs will be applied to their exports.