Economic Diplomacy in Shambles’: Tariffs Trigger Political Firestorm

In the wake of the United States imposing a steep tariff hike on a range of Indian exports, political tempers in New Delhi flared as opposition parties launched a scathing attack on the central government. Labelling it as a consequence of a "failed foreign policy", leaders from across the political spectrum accused the government of mishandling bilateral trade relations and failing to anticipate the aggressive protectionist stance of the Trump administration.

The move by the US, which imposes a 25% tariff on selected Indian goods along with a proposed penalty clause for trade imbalances, is being viewed not just as a trade issue but as a diplomatic snub. Critics within India’s political landscape are now calling the Centre’s foreign policy "directionless", "reactive", and "too focused on optics".

A Jolt to the Government’s Trade Strategy

The tariff announcement comes at a time when India has been trying to reposition itself as a reliable global economic partner and an emerging manufacturing powerhouse. The sudden blow from Washington has caught policymakers off guard, especially considering the high-profile diplomatic engagements and photo-ops that suggested warmth between the two nations in recent months.

According to opposition leaders, this tariff move exposes the hollowness of the Centre’s strategic planning. They argue that the government has overinvested in symbolic gestures and underinvested in substantive, behind-the-scenes trade negotiations.

Congress: ‘From Hug-Diplomacy to Slap-Diplomacy’

Leading the charge, the Congress Party described the tariff hike as a clear sign of deteriorating bilateral trust. A senior Congress spokesperson quipped, “From hugging world leaders to being slapped with tariffs—this is the cost of superficial diplomacy without substance.”

They further pointed out that India had failed to negotiate any binding trade framework with the US over the last five years, despite being among Washington’s key trade partners in Asia. The party accused the government of ignoring red flags about rising economic nationalism in the US and instead relying too heavily on personal rapport between leaders.

TMC and AAP Echo the Sentiment

West Bengal Chief Minister and Trinamool Congress (TMC) chief Mamata Banerjee also weighed in, saying the Centre's "submissive and inconsistent" foreign policy had made India appear weak on the global stage. She asked, “Where is the gain for India in any of these so-called alliances? Are our exporters not the ones being punished today?”

The Aam Aadmi Party (AAP) echoed similar concerns. In a strongly worded statement, the party said the US tariff decision exposes “India’s lack of trade leverage and the government's inability to secure favorable economic terms from even its closest democratic allies.”

Left Parties Criticise 'Blind Alignment'

CPI(M) and other Left parties took the opportunity to attack the government’s broader foreign policy orientation. They accused the Centre of “blindly aligning with US interests” without securing reciprocal benefits for India. “You cannot call someone your strategic partner while allowing your domestic manufacturers to get crushed by their policies,” a Left party MP argued.

They called for a fundamental rethink of India’s foreign policy—one that prioritizes economic sovereignty over alignment with any particular bloc or nation.

Exporters Caught in the Crossfire

Beyond political accusations, the real consequences are beginning to hit India’s exporters, especially in sectors like textiles, auto components, chemicals, and leather goods—many of which were already under pressure from global inflation and falling demand. The new tariffs make Indian products significantly less competitive in the US market, putting thousands of jobs at risk.

Export associations have expressed concern over the lack of communication from the government and are demanding immediate mitigation measures, including incentives, subsidies, and fast-tracked trade talks.

One exporter from Ludhiana stated, “We were told that 'Make in India' would take us global. Now, we are stuck with warehouses full of goods we can’t sell overseas.”

BJP Defends Policy, Blames US Election Politics

In response to the political backlash, BJP leaders defended the government’s foreign policy, arguing that the US tariff decision was influenced more by domestic politics in the US, particularly Trump’s re-election strategy, rather than a failure of Indian diplomacy.

A senior BJP minister stated, “It’s unfortunate that the opposition is politicising a global trade issue. Every country has the right to protect its economy. We are in touch with the US, and the situation will be addressed.”

They also claimed that India's long-term trade strategy includes diversification into European, Southeast Asian, and African markets, reducing dependence on the US.

Policy Experts Call for Course Correction

Meanwhile, former diplomats and trade analysts are calling for a course correction in India’s approach. They argue that the country has overplayed its geopolitical importance while underestimating the need for hard economic negotiations.

“The assumption that strategic alignment equals economic generosity is flawed,” said one former ambassador. “India must learn to negotiate trade with the same seriousness it shows in security and defense discussions.”

There’s also a call for building deeper economic alliances with regional partners through groupings like RCEP or even renegotiating FTAs with the EU and ASEAN.

Strategic Silence or Tactical Delay?

One of the puzzling aspects of the tariff episode is the lack of an immediate official response from the Ministry of External Affairs or the Commerce Ministry. Some view it as tactical silence while back-channel diplomacy is underway, while others interpret it as a sign of policy paralysis.

“This is not the time to stay quiet. The country deserves to know what the plan is,” said a Rajya Sabha MP from the opposition bench. “What are we doing to protect our exporters, and what is our long-term vision to secure trade relationships?”

Looking Ahead: Can India Regain Balance?

As India finds itself at an economic crossroads, this tariff jolt from the US raises broader questions about the future of India’s foreign and trade policy. Is India prepared to defend its economic interests in a multipolar world where strategic alliances no longer guarantee economic support?

For the opposition, the answer is clear: the government must move beyond headline diplomacy and invest in policy depth, trade expertise, and institutional credibility.

For the ruling party, the challenge lies in showing that this setback is an outlier—not a symptom of deeper systemic neglect.

Until then, India's trade future—and the fortunes of its exporters—remain uncertain, caught between global power politics and domestic political blame games.