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Home»Disinformation»India Denies Review of Trade Pacts or Retaliatory Tariffs on US Goods Amidst Speculation.
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India Denies Review of Trade Pacts or Retaliatory Tariffs on US Goods Amidst Speculation.

Press RoomBy Press RoomAugust 3, 2025
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India Rejects Rumors of Suspending Agreements with US Amidst Trade Tensions

New Delhi – The Indian Ministry of External Affairs (MEA) has dismissed social media speculation about India considering the suspension or review of bilateral agreements with the United States in response to perceived hostile economic policies. The MEA labeled the circulating claims as “disinformation” in a post on X (formerly Twitter), sharing screenshots of the originating posts. This clarification comes amid recent strains in India-US trade relations, sparked by US President Donald Trump’s imposition of tariffs on Indian goods.

The trade dispute has seen Trump implement a 25% tariff on certain Indian imports, despite ongoing negotiations for a trade deal between the two nations. Adding to the friction are Trump’s threats of further penalties against India for its purchase of Russian arms and oil. Trump has also openly expressed disapproval of the BRICS economic bloc, of which India is a member, criticizing India’s economic performance.

In the midst of this economic uncertainty, Prime Minister Narendra Modi has called for a renewed emphasis on “Swadeshi,” advocating for the prioritization of locally-produced goods. Addressing a public gathering in Varanasi, his parliamentary constituency, Modi stressed the need for national unity in navigating the increasingly volatile global economic landscape.

Modi urged Indians to transcend political divides and support the domestic economy, emphasizing the importance of self-reliance. He framed the Swadeshi movement as crucial to India’s aspiration of becoming the world’s third-largest economy, calling on all political parties and leaders to champion the cause.

The Prime Minister’s call for Swadeshi comes as India faces multiple economic challenges, including the trade tensions with the US and the global economic slowdown. While seeking to bolster domestic industries, India is simultaneously engaged in trade negotiations with several partners, including the US, to secure favorable trade terms.

The government’s efforts to balance domestic economic priorities with its international trade engagements will be crucial in determining India’s economic trajectory in the coming years. As the global economic climate grows more uncertain, India’s response to these challenges, including the promotion of domestic industries and the navigation of delicate trade relationships, will be closely watched. The recent clarification by the MEA regarding bilateral agreements with the US underscores the complexity of these economic and political considerations.

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