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Home»Disinformation»MEA Refutes Disinformation Regarding India-US Trade Disputes
Disinformation

MEA Refutes Disinformation Regarding India-US Trade Disputes

Press RoomBy Press RoomAugust 3, 2025
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India Rejects Social Media Claims of Retaliation Against US Trade Tariffs

New Delhi – The Indian Ministry of External Affairs (MEA) has dismissed social media rumors suggesting that India is contemplating the suspension or review of bilateral agreements with the United States in response to recent trade actions by the US. The MEA labeled the circulating posts as “disinformation,” specifically referencing posts from accounts titled “Middle Eastern Affairs” and “China in English,” which falsely asserted that India was reevaluating trade privileges granted to the US and exempting US products from tariffs. One post even fabricated a quote, claiming India declared, “No privileges without mutual respect.” This clarification comes amidst escalating trade tensions between the two nations, sparked by US President Donald Trump’s announcement of a 25% tariff on certain Indian exports.

The trade dispute originated with President Trump’s declaration of a 25% tariff on specific Indian goods, along with additional penalties effective August 1st. Trump justified this move on his social media platform, Truth Social, citing India’s “far too high” tariffs and what he described as the “most strenuous and obnoxious non-monetary Trade Barriers of any Country.” He further emphasized the friendly relationship between the two nations while simultaneously criticizing India’s trade practices. This announcement immediately heightened trade tensions between the two countries, leading to speculation about potential retaliatory measures from India.

In the wake of the US tariff announcement, Indian Prime Minister Narendra Modi advocated for a renewed focus on ‘Swadeshi,’ the promotion and consumption of domestically produced goods. While refraining from directly addressing the trade dispute with the US, Modi stressed the importance of supporting Indian farmers, small businesses, and job creation, particularly in light of the current global economic uncertainties. He encouraged Indian citizens to prioritize products made by Indian labor and skill, echoing the ‘Vocal for Local’ campaign.

Modi’s call for ‘Swadeshi’ represents a strategic move to bolster domestic industries and potentially mitigate the impact of US trade actions. By emphasizing self-reliance and domestic consumption, the Indian government aims to strengthen its internal market and reduce dependence on international trade, especially with nations imposing unfavorable tariffs. This approach resonates with a nationalistic sentiment, encouraging citizens to contribute to the national economy by prioritizing locally manufactured products.

Furthermore, Modi’s appeal extended to traders and shopkeepers, urging them to prioritize stocking and selling Indian-made goods, particularly during the approaching festival and wedding seasons, which represent significant periods of consumer spending. He highlighted the positive economic impact of previous appeals that encouraged families to host weddings within India instead of abroad, signifying a conscious effort to retain spending within the country. This multi-pronged approach aims to boost domestic demand and potentially offset the negative consequences of reduced exports to the US.

The MEA’s swift denial of retaliatory measures signals India’s preference for a more measured response to the US trade tariffs. Rather than engaging in a tit-for-tat escalation, the government appears focused on reinforcing its internal market through the promotion of domestic products. While the long-term impact of the US tariffs and India’s ‘Swadeshi’ push remains to be seen, the current scenario underscores the complexities of global trade relations and the increasing emphasis on national economic self-sufficiency. The interplay between these two powerful economies will likely continue to shape the global trade landscape in the coming months and years.

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