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India has sharply criticised the United States' unilateral decision to impose 50% tariffs on its exports, calling the move “unfair, unjustified and unreasonable”. After US President Donald Trump signed the executive order doubling duties on Indian goods, senior Indian diplomat Dammu Ravi labelled the move illogical and unprovoked.
“This is a unilateral decision. I don't think there is any logic or reason in the way it is done,” said Ravi, Secretary of Economic Relations at the Ministry of External Affairs.
Speaking on the sidelines of the LIDE Brazil India Forum, Ravi expressed hope that the decision would eventually be reversed through ongoing dialogue.
Is there still hope for a breakthrough?
Despite the escalation, Ravi confirmed that trade negotiations between the two countries remain active. “We were very close to finding a solution, and I think that momentum has taken a temporary pause, but it will continue,” he noted. The Indian Ministry of Commerce is leading the discussions, with a team of US officials expected to visit India later this month.
Ravi framed the current dispute as a “temporary aberration” and insisted that India would not be deterred. “The high tariff will not pull back or derail India Inc. If the US becomes difficult to export to, we will automatically look at other opportunities,” he said, naming the Middle East, Latin America, Africa and South Asia as potential new markets.
Why now? What triggered Trump’s latest move?
Washington has suggested that Donald Trump’s latest tariff hike was fuelled by New Delhi’s continued purchase of Russian oil — a decision that has irked the US administration. The new tariffs are expected to severely impact key Indian exports such as textiles, leather, and seafood.
Nevertheless, Ravi emphasised the strategic importance of US-India ties, describing the two nations as “complementary partners” in trade. “Our businesses and leaders continue to seek economic cooperation,” he said.
Is US dollar’s dominance under threat?
Donald Trump has also criticised discussions around the use of a BRICS currency, raising questions about whether India is seeking alternatives to the US dollar in bilateral trade.
Ravi clarified that while there is no intention to avoid the dollar, “there is a shortage of hard currency post-Covid, and countries are exploring ways to trade in their own currencies.”
He said work is ongoing both bilaterally and at the BRICS level to enable such arrangements, but denied any formal pivot away from the dollar.
How does Brazil fit into this picture?
The timing of Ravi’s comments is significant, coming just days after the BRICS Summit in Brazil, which was attended by Prime Minister Narendra Modi. Ravi highlighted the “extremely successful” outcomes of the summit, especially in deepening Brazil-India ties.
He pointed out common ground between the two democracies and noted opportunities for collaboration in fossil fuels, renewables, solar energy, and biofuels.
Interestingly, Ravi acknowledged that India's direct benefit transfer scheme — which has saved crores by eliminating middlemen — was inspired by Brazil. “We have a lot to learn from each other, and this partnership can be truly complementary,” he said.
What next? Can diplomacy prevail?
Despite the current friction, India remains hopeful that pragmatic diplomacy will prevail. “This is a phase we have to overcome,” Ravi concluded. With both sides still in talks and a shared desire for a strong economic relationship, the coming weeks could prove decisive for the future of one of the world’s most important bilateral partnerships.
English (US) ·