Modi's Trade Triumph: How India Stood Firm Against US Tariff Aggression

In his view, the Americans caught the message. "India had finessed the American market with the trade deal with Europe. President Trump's attempt to use tariffs as aggression in order to make India kowtow, in order to make India bow down, had been very neatly sidelined because it is obvious that the American, that the Indian gems, the Indian seafood, Indian textiles, which are now being denied the American market, would find an equally big market in European Union, making the American threats infructuous."

Akbar termed the development the "triumph and success of a fundamental pillar of the Modi doctrine". "Prime Minister Modi believes in cooperative nationalism. Nationalism is, and India first, is the key note, key pillar of his approach to the world. But this is linked with cooperation. And if nations across the world understand that they can cooperate with India and it is mutually beneficial to do so, then there is always the prospect of a happy relationship. In fact, the phrase that has been used by Prime Minister Modi is mutually beneficial cooperation."

He asserted that the United States has now witnessed the strength of India's commitment to its honour. "There was a lot of criticism, I think petulant criticism, by the familiar Delhi lobby when Prime Minister Modi first took a stand against what could be called tariff aggression. I think there were a lot of people giving less than wholesome advice that he should compromise. He did not because Prime Minister Modi will not compromise with India's autonomy, India's self-respect and India's honour."

Akbar expressed confidence that the future of bilateral ties would benefit from this outcome. "America now has witnessed the cumulative effect of India's stand. But the good thing is that I think the future of India-American relationship will now be on an even keel, a stable keel and will deliver on the inherent promise that this relationship always has."

The comments come in the wake of US President Donald Trump's announcement on Monday (local time) of a trade deal with India, following the imposition of 50 per cent tariffs on Indian goods in August 2025. The agreement includes a sharp reduction in duties and claims that India will stop purchasing Russian oil.

Trump made the announcement on his social media platform Truth Social, stating, "It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country." He added that they discussed "many things, including Trade, and ending the War with Russia and Ukraine."

Trump claimed that Modi "agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," adding, "This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!"

On the tariff relief, Trump said, "Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%." He further stated that India will "likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."

Trump also noted that the Prime Minister committed to "BUY AMERICAN," including purchases of "over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products."

"Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most," Trump added.

Prime Minister Narendra Modi confirmed the trade agreement in a post on X, saying, "Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights."

The India-US trade breakthrough follows the India-EU agreement formalised on 27 January in the presence of Prime Minister Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa. Both sides also agreed on a strategy document titled 'Towards 2030 - A Joint India-European Union Comprehensive Strategic Agenda', reflecting the expanding scope of India-EU strategic cooperation.

Among the agreements exchanged was the political declaration on the conclusion of negotiations on the India-EU Free Trade Agreement, signed by Piyush Goyal and Maros Sefcovic. The India-EU Security and Defence Partnership document was signed by Kaja Kallas and S Jaishankar, while the comprehensive framework on mobility was signed by Sefcovic and Jaishankar, underlining the wide-ranging and multifaceted nature of India-EU strategic cooperation.

- ANI