India-US Tariff War: US stunned by Jaishankar's sharp reply, Trump's finance minister said- 'India is the world's biggest democracy'

India-US Tariff War: The 50% tariff imposed on India by US President Donald Trump from August 27, 2025 has brought bitterness in India-US relations. The move has not only affected the trade relations of the two countries, but a sharp statement by Indian Foreign Minister S. Jaishankar has created an uproar in America. Jaishankar's statement is being widely discussed in the American media, and after this there are signs of softening in the US administration's stance. US Finance Minister Scott Besant also had to admit that India is the largest democracy in the world and the two countries will eventually come together.

Jaishankar's statement: uproar in America

External Affairs Minister S. Jaishankar gave a befitting reply to US allegations of buying oil from Russia. He said, "If America has a problem with India buying Russian oil, then it should stop buying refined oil from India." This statement shocked the US administration. An anchor on the American channel Fox TV asked Finance Minister Scott Besant about this, "India's Foreign Minister has said that if America has a problem with India buying Russian oil, then it can stop buying refined oil from India. What do you have to say on this?" In response to this, Besant said, "India is the world's largest democracy, and America is the world's largest economy. Ultimately we will come together." Besant's statement shows that America wants to avoid a confrontation with India, because it understands the importance of relations with India very well.

Why did America impose 50% tariff?

America claims that India is buying cheap crude oil from Russia and refining it and selling it in the international market, giving Russia economic strength. Trump says that this is hindering efforts to stop the Ukraine war. However, the truth is that America wanted more market access and tariff concessions for its products from India, which India rejected. In response, Trump first imposed a 25% tariff from August 7, 2025, and then added an additional 25% tariff for buying oil from Russia, taking the total duty to 50%, which became effective from August 27.

Trump had given India 21 days to reach an agreement, but Prime Minister Narendra Modi refused to accept the US conditions. At an event in Ahmedabad on Monday, PM Modi made it clear, "We will not compromise on the interests of farmers, livestock farmers and small industries. No matter how much the pressure increases, we will face it boldly." This tough stand of India has weakened Trump's bet.

India's strategy: Looking for new markets

India has started looking for alternative markets to respond to US tariffs. Plans are being made to increase exports to areas such as Europe, Canada, Latin America and the Middle East. Particular attention is being given to areas such as marine products, leather goods and food processing. Apart from this, the government has announced a relief package and tax cuts of $2.8 billion for exporters. This strategy shows that India is focused on strengthening its economic independence rather than bowing to US pressure.

Economic impact of tariffs

According to the Global Trade Research Initiative, India exports goods worth about $86.5 billion to the US every year, of which 50% tariffs will affect $60.2 billion worth of exports. Exports are expected to decline by up to 70%, especially in sectors such as textiles, gems and jewellery, seafood and leather goods. This could have a negative impact of 0.4-1% on India's GDP growth. However, experts believe that India's strong domestic demand, foreign exchange reserves of $700 billion and diverse diplomatic strategy will enable it to withstand this blow.

Criticism in the US and questions on Trump's strategy

Trump's move is also being criticized in the US. Experts like Fareed Zakaria have termed it the biggest mistake of the Trump administration. A confrontation with an important ally like India could cause strategic and economic damage to the US. India has linked its trade with Russia to its energy security and national interests, which is also getting support at global forums. Jaishankar's statement and India's tough stand indicate that India will not bow down to pressure.