US President Donald Trump’s recent decision to impose a blanket 25% tariff on all Indian imports starting August 1, along with penalties for purchasing Russian oil and arms, has triggered a political storm in India amid the ongoing Monsoon Session of Parliament.

The move has also provoked a sharp reaction from India’s Leader of Opposition in the Lok Sabha, Rahul Gandhi, who blamed Prime Minister Narendra Modi for what he called the “death” of the Indian economy.

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Rahul Gandhi says, “Modi has killed the Indian economy”

Taking to X (formerly Twitter), Rahul Gandhi wrote, “THE INDIAN ECONOMY IS DEAD. Modi killed it. 1. Adani-Modi partnership 2. Demonetisation and a flawed GST 3. Failed ‘Assemble in India’ 4. MSMEs wiped out 5. Farmers crushed. Modi has destroyed the future of India’s youth because there are no jobs.”

Responding directly to Trump’s remark about the faltering Indian economy, Gandhi said, “Yes, he is right. Everybody knows this except the Prime Minister and the Finance Minister. The entire world knows that the Indian economy is a dead economy. BJP has finished the economy to help Adani.”

Gandhi also alleged that PM Modi prioritises the interests of industrialist Gautam Adani over national interest. “PM Modi works only for one person and that is Adani. This India-US trade deal will happen exactly as Trump wants. The government has destroyed our economic, defence and foreign policy,” he said.

Gandhi didn’t stop at trade. He linked Trump’s tariff threat to previous claims made by the US President over India-Pakistan tensions. “Trump claimed 30-32 times that he brokered a ceasefire. He also said five Indian jets fell. Now he imposes 25% tariffs. Why is Modi silent? Who is really in control here?” he questioned.

Shashi Tharoor on Trump’s 25% tariff on India

Congress MP Shashi Tharoor also weighed in, describing the development as alarming. “This is a very serious matter. America is a huge market for us—our exports are worth nearly $90 billion. If these penalties rise to 35-45%, or even 100%, it could destroy our trade,” he warned.

Tharoor suggested the tariffs might be a negotiating tactic, but cautioned that India must protect its interests. “If their demands are unreasonable, our negotiators must resist. America must understand our position too. Our average tariff on American goods is only around 17%. American products aren’t always competitive in the Indian market,” he noted.

India bullied by buffoon-in-chief in the White House: Owaisi

Calling Trump “buffoon-in-chief” who is bulling India with tariffs, AIMIM chief Asaduddin Owaisi said, “Trump has announced that Indian exports will now come with a 25% tariff. It’s sad to see my country’s government being bullied by a buffoon-in-chief in the White House. This tariff will come with a vague “penalty” for trading with Russia. India is independent sovereign country. Not a vassal state that gives salami in the Emperor’s court. These measures are a clear and deliberate attack on our sovereignty and economic standing. I’ve raised the issue of rising hostile trade practices against India in Parliament for years.”

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Owaisi also slammed PM Modi’s silence on to Trump’s 25% tariff. He said, “These tariffs will hit Indian MSMEs, manufacturers, IT firms, service providers, and even our farmers. They’ll deter FDI, damage exports, and hurt jobs. While Japan will pay 15%, Vietnam will pay 20% and Indonesia has a tariff of 19%. This will hit India’s competitive advantage for US exports. What’s worse is our own. PM Narendra Modi’s silence. Is this the “56-inch chest” we were promised? Or will we only see it if Trump raises tariffs to 56%?”