India-US Trade Relations in Spotlight After Tariffs
The decision by former US President Donald Trump to impose a 50% tariff on Indian exports has sparked fresh tensions in India-US trade relations. This move has gone beyond being a mere economic decision, influencing consumer behaviour and political discourse in India. Street protests, social media campaigns, and political statements have collectively triggered a renewed wave of “Swadeshi” sentiment.
Impact of the Tariffs
The controversy began when Donald Trump announced a 50% tariff on nearly 55% of Indian exports to the US. The implementation is being carried out in two phases — the first phase started on 7 August 2025 with a 25% tariff, and the second phase will take effect from 27 August, raising the total tariff to 50%.
The US has stated that this decision was prompted by India’s continued import of oil from Russia, which Washington views as a violation of allied sanctions. India has denounced the move as “unfair” and “unwarranted”, asserting that its trade policies are determined solely on the basis of national interest.
‘Swadeshi’ Movement Gains Momentum
Following the tariff announcement, campaigns like ‘Adopt Swadeshi’ and ‘Boycott American Brands’ have gained rapid traction in India. The Swadeshi Jagran Manch, several industrialists, and supporters of Prime Minister Narendra Modi are at the forefront of these movements. Leading American brands such as McDonald’s, Coca-Cola, Amazon, and Starbucks have become primary targets of the boycott.
On social media, hashtags like #BoycottUSA, #BoycottAmericanBrands, and #MakeInIndia are trending. Across various cities, small-scale protests are being held, urging people not to purchase American products.
Voices from Leaders and Entrepreneurs
Manish Chowdhary, co-founder of Wow Skin Science, released a video on social media stating that this is the right time to position Indian brands at the global stage. He urged people to adopt more Indian products in their daily lives.
Similarly, Rahm Shastry, CEO of DriveU, posted that India should develop its own Twitter, Google, and YouTube — just as China has done. According to him, technological self-reliance would not only shield India from foreign pressures but also help it lead the global tech race.
Modi Reaffirms Call for Self-Reliant India
Prime Minister Narendra Modi, in a speech in Bengaluru, once again emphasised ‘Atmanirbhar Bharat’ (Self-Reliant India). He said —
“Indian companies are producing world-class products, but the time has come to make them first for our own country. Our youth and entrepreneurs must create products of global quality that meet the needs and preferences of India.”
During his address, Modi also referred to initiatives such as ‘Make in India’ and ‘Zero Defect, Zero Effect’, appealing to citizens to prioritise Indian-made goods.
Economic Impact and Experts’ Warnings
Trump’s decision is expected to have a significant impact on India’s trade. Experts warn that exports in textiles, handicrafts, and engineering goods could face serious setbacks. Estimates suggest that India could suffer losses of up to $5 billion.
The demand for Indian textiles and garments in the US market is already under competitive pressure. With the new 50% tariff, many orders could be cancelled or diverted to countries like China and Vietnam.
American Companies Continue Expanding in India
Interestingly, despite the boycott calls and protests, American companies are not halting their investments in India. Recently, Tesla opened its second showroom in Delhi, an event attended by both Indian and American officials. This move reflects continued confidence among US brands in India’s vast consumer market of 1.4 billion people.
Impact Beyond Trade
This dispute is not limited to the economic front; it has evolved into a socio-political discourse. The demand for ‘Swadeshi’ is becoming a matter of national pride and self-respect, rather than just a trade policy. For the youth and the startup sector in particular, this is an opportunity to promote indigenous technology and products.
The Road Ahead
The tariff standoff shows no signs of easing. While India may seek a diplomatic resolution, domestically the ‘Boycott American Brands’ sentiment is likely to grow. In the coming months, it will be worth watching whether this movement remains an emotional reaction or genuinely reshapes consumer buying habits.
Conclusion: Trump’s tariff decision has laid the foundation for a new Swadeshi movement in India. Whether short-lived or prolonged, it has made one thing clear — the effects of foreign economic policies are no longer confined to corporate boardrooms; they spill over onto the streets, social media, and into the everyday choices of ordinary people. For India, this is both an opportunity and a challenge, requiring the transformation of self-reliance slogans into tangible production capabilities and stronger trust in the domestic market.
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