- Former G20 Sherpa Amitabh Kant called US tariffs on India a “wake-up call” for reforms
- US imposed an additional 25% tariff on select Indian exports from Wednesday
- Tariffs target India’s energy security and strategic autonomy over Russian oil purchases
Former G20 Sherpa and NITI Aayog CEO Amitabh Kant on Wednesday termed Donald Trump's tariffs a “wake-up call” for India, while suggesting “bold reforms” to secure long-term growth. In a post on X, Kant suggested that the United States' tariffs targeting India are not truly about Russian oil but about challenging India's "energy security and strategic autonomy".
“The irony is striking: the US is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil,” he wrote.
Kant emphasised that India must remain firm in the face of global pressure, as it has done in the past. He called for never to compromise on India's “energy security and strategic autonomy.”
Trump's tariffs must be a wake-up call for India. The irony is striking: the U.S. is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil.…
August 27, 2025Advertisement“It is about India's energy security and strategic autonomy, which we should never compromise. India has, on numerous occasions, refused to yield to global pressure,” he said.
Kant also called for bold economic reforms, urging the government to undertake transformative policy changes and to diversify India's export markets.
Advertisement“This moment should be no different. Rather than intimidate us, these global headwinds must galvanise India into bold, once-in-a-generation reforms, while also diversifying our export markets to secure long-term growth and resilience,” he added.
Kant's remarks came as the US imposed an additional 25% tariff on select Indian exports, which took effect from Wednesday. Earlier, President Trump had announced reciprocal tariffs of 25%, which came into force on Aug. 7. That day, similar tariffs were imposed on nearly 70 other nations.
Trump's additional 25% tariffs on India have been imposed over New Delhi's purchases of discounted Russian oil. Trump has said that this action against India is to counter Russia's “war machine” in Ukraine.
India responded to the development, calling the United States' extra tariffs “unfair”. With the tariffs now in effect, it is anticipated that India's labour-intensive sectors such as textiles, gems and jewellery, leather goods, and food products, among others, will be impacted significantly.
AdvertisementAccording to the Global Trade Research Initiative (GTRI), India exports approximately $86.5 billion in goods to the US annually. Around $60.2 billion of these exports are now facing a 50% tariff.
GTRI founder Ajay Srivastava warned that exports in these sectors could collapse by 70%, dropping to $18.6 billion, and overall shipments to the US could decline by 43%, according to an NDTV report. This can have a significant short-to-medium-term impact on thousands of jobs in India. This also places India at a competitive disadvantage, as other Asian nations like China and Vietnam are facing significantly lower tariff rates.
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