Former U.S. ambassador to the United Nations, Nikki Haley, has strongly criticized President Donald Trump’s proposal to impose heavy tariffs on Indian goods. Haley warned that such actions could strain the crucial India-U.S. relations at a pivotal moment. She cautioned Trump against granting leniency to rivals like China while antagonizing allies like India.
Haley accused the Trump administration of adopting a hypocritical stance, pointing out the 90-day tariff relief granted to China, a strategic adversary, despite stringent measures against India.
On X (formerly Twitter), Haley stated, “India should not buy oil from Russia, yet China, an adversary and the largest buyer of oil from Russia and Iran, received 90 days tariff relief. Do not grant China leniency and maintain strong relations with allies like India.”
Nikki Haley has long been an advocate for strong ties between India and the United States. She believes that to counter China’s growing influence, it is essential to forge robust partnerships with democratic nations like India.
Source: aajtak
Haley’s comments come at a time when Trump, in an interview with CNBC, announced a significant tariff hike on Indian goods from August 1, up to 25%. This decision was made in response to India’s purchase of Russian oil, which he stated was fueling the “war machine.”
During the interview, Trump said, “India has the highest tariffs worldwide. They do substantial trade with us, but we do very little with them. We had agreed on 25% tariffs, but I plan to increase them significantly as they purchase Russian oil.”
Trump also claimed that India had proposed zero tariffs on American goods in a new agreement, which he found inadequate. “If they are funding a war we oppose, merely zero tariffs are insufficient,” he stated.
India has repeatedly defended its energy policy, citing national interests and affordable pricing for its oil purchases. The Ministry of External Affairs has also pointed out that the U.S. and European nations themselves maintain trade and energy relations with Russia, despite criticizing others.
Trump’s tariff threats have raised economic concerns. Indian rating agency ICRA on Monday lowered its GDP growth estimate for FY26 (Fiscal Year 2025-26) from 6.2% to 6.0%, attributing this to rising trade tensions with the U.S. and policy uncertainty.
ICRA further stated that if these tariffs are implemented, sectors like textiles, auto parts, chemicals, and jewelry could face increased competition in the U.S. market. India’s trade surplus with the U.S., which stood at $41 billion in FY25, could be affected. However, sectors such as pharma, petroleum, and telecom instruments might experience lesser impacts, with pharma constituting 37% of India’s total exports to the U.S. being largely unaffected by this tariff dispute so far.
