India’s Tariff Stand: Sovereignty Over Ego in US Relations

India’s refusal to appease Trump’s tariff threat shows its principled stand for sovereignty and strategic autonomy in a changing world order.

Introduction: India’s Tariff Response

In his column “On Tariffs, a What-if Story” (The Indian Express, August 1, 2025), Sanjaya Baru takes a critical view of how the Indian government handled the diplomatic crisis created by President Trump’s sudden imposition of a 25% tariff on Indian exports. According to Baru, the crisis escalated largely because the Modi administration was too rigid and failed to manage Trump’s personal expectations. He suggests that a more pragmatic approach—publicly crediting Trump for his peacemaking efforts in ending Operation Sindoor, while quietly maintaining India’s traditional stance on bilateral issues—could have helped satisfy Trump’s need for recognition and potentially softened or even avoided the tariff shock. Baru argues that international relations, especially with unpredictable leaders like Trump, are not just about policy but also about ego and optics. Had India played the “ego card” better, he believes, it might have been spared harsh tariffs and international isolation.

In contrast, this essay shows that India’s actions were not a diplomatic mistake, but a deliberate and principled assertion of strategic autonomy. The tariff crisis is best understood not as a failure to flatter Trump, but as a result of deeper global power shifts. India’s refusal to indulge in ego management signals a new kind of international maturity, where dignity, sovereignty, and long-term interests come before short-term optics. This essay argues that India’s stance, though it may bring temporary difficulties, is the right path for a rising global power—and that yielding to the politics of ego would undermine the very independence India seeks to protect.

India’s New Confidence on the World Stage

India’s place in the world is changing rapidly. With a population of over 1.4 billion people, most under the age of 30, India is not just growing in size but also in confidence. The country is now the world’s fifth largest economy, and experts predict it will become the third largest within the next decade, overtaking established giants like Japan and Germany.

But more than just economic growth, India is showing that it can lead in technology and innovation. Its digital payment system, UPI, is handling more transactions than established Western companies like Visa and Mastercard. The Indian space agency, ISRO, has landed a mission on the moon’s south pole for less money than it takes to produce a Hollywood film. Programmes like “Make in India” encourage manufacturing within the country and reduce dependence on foreign imports. These achievements are not just about showing off; they are about building real independence and creating jobs and opportunities for Indian people.

Big international companies like Apple, Tesla, and Google are now looking to India not just as a market, but as a place to manufacture their products. India’s rise is happening on its own terms, not by copying Western countries, but by forging a unique path that fits its needs and values.

America’s Worries and the Meaning of Tariffs

For most of the last hundred years, the United States has been the world’s main leader, setting the pace in technology, the economy, and even popular culture. When America spoke, other countries listened. But now, as India grows more independent, America feels its control slipping. This is especially clear in how America reacted with the 25% tariff threat.

Baru argues that India could have prevented the tariffs by giving Trump public credit for helping end Operation Sindoor, a tense stand-off with Pakistan. He suggests that Trump, known for his need for attention and praise, might have settled for a thank-you tweet or public recognition, and then eased the pressure on trade. Instead, India stuck to its usual position that all issues with Pakistan are bilateral and do not require outside intervention. For Baru, this was a wasted diplomatic opportunity.

However, this essay’s perspective is different: India’s refusal to credit Trump was not a mistake but a conscious choice to defend its independence. The tariff threat is seen less as the result of one event, and more as a symptom of America’s discomfort with India’s rising power and unwillingness to play by old rules. America is used to being the “axis” around which other countries revolve; now, it is watching India become a “pole” of power in its own right.

Sovereignty Over Short-Term Gains

The heart of this debate is whether India should have set aside its principles for a quick diplomatic fix. This essay’s answer is clear: No. India’s refusal to publicly credit Trump’s “peacemaking” was a way to show that it will not allow outsiders to interfere in sensitive national matters, especially with a country like Pakistan where history is complex and emotional for many Indians.

It is true, as Baru says, that leaders like Trump value recognition and praise. But for India, national dignity is not something to be traded for a possible reduction in tariffs. Such a move might have brought short-term relief but at the cost of long-term independence and respect. It would set a dangerous example, encouraging other countries and leaders to expect similar treatment in the future.

India’s position is rooted in the idea of “strategic autonomy.” This means having the freedom to make independent decisions—on trade, security, and diplomacy—without asking for permission from more powerful countries. It is about being a real partner, not a junior sidekick. This is especially important now, when global politics is changing and old patterns of dominance are fading.

Trade, Tariffs, and the Real Power Struggle

America’s claim is that Indian products like textiles, electronics, and medicines get easier access to American markets, while American products face higher tariffs in India. On paper, this looks unfair. For example, India charges an average tariff of about 39% on American farm goods, while the US charges around 5-7% on Indian goods.

But these numbers do not tell the whole story. Most Indians still live in rural areas, and opening the market to cheap foreign goods could hurt millions of poor farmers. The government is trying to lift people out of poverty without destroying their livelihoods. For India, this is about survival, not just protecting businesses for the sake of it.

Trump’s approach to trade is less about fairness and more about power. He uses tariffs as a tool to pressure countries into following America’s wishes. The real problem is not just the trade numbers, but America’s expectation that other countries will do what it wants, especially when it comes to big decisions like buying oil and defence systems from Russia.

India, however, is determined to choose what is best for itself, even if it means facing American pressure. This is what makes the current situation different from the past, when countries felt they had no choice but to listen to Washington.

Strategic Autonomy in Practice

India’s idea of strategic autonomy goes far beyond trade. In the last few years, India has signed important deals with countries like France (for Rafale jets), Israel, the UK, Japan, and the US, all while keeping long-standing ties with Russia. By 2025, over 70% of India’s military spending was on things made in India, making it not just a buyer but also an exporter of advanced equipment.

India is also working to create new trade partnerships with the UAE, Australia, South Korea, and the EU, as well as with many countries in Africa and Latin America. These deals are practical, not just symbolic. They create jobs, improve infrastructure, and help countries work together without depending too much on America or any one partner.

India is a leader in the BRICS group (Brazil, Russia, India, China, South Africa), which is building its own payment systems and banks. India is even trading in its own currency with some countries, rather than always using US dollars. This is part of a bigger trend where countries want more independence and are less willing to accept American dominance.

Beyond Optics: Maturity and Long-Term Thinking

Baru’s column suggests that international relations is all about managing egos and looking good in public. But this essay’s view is that India’s choices are about substance, not just appearances. Yes, there are costs—tariffs will hurt some businesses in the short term, and India may sometimes feel isolated when it refuses to flatter other leaders. But these are the prices of growing up as a nation.

India’s approach is not about being stubborn for its own sake. Instead, it is about building a future where India is respected for its decisions and principles. If India were to compromise every time for a temporary gain, it would lose credibility in the long run.

The tariff threat is not the result of one failed meeting or a missed opportunity to send a thank-you tweet. It is the result of a much bigger change: the world is becoming more “multipolar,” with several big countries making their own decisions. America’s influence is still strong, but it must now negotiate, not dictate. The real challenge is for America to adjust to this new world, not for India to bow to ego or optics.

Conclusion

Sanjaya Baru’s arguments rest on the idea that India’s diplomatic crisis with the US could have been avoided with a bit more flexibility and ego-management. But this essay’s perspective shows that the true story is much larger: India is asserting its sovereignty, acting with maturity, and choosing the hard but right path. The 25% tariff is not just a result of one event, but a sign of America’s struggle to adapt to a changing global order.

The real test for India is not whether it can flatter foreign leaders for quick wins, but whether it can build a future based on dignity, independence, and smart partnerships. In the end, principles matter more than optics. India’s refusal to play the politics of ego is not a mistake, but a bold statement of what kind of power it wants to be in the 21st century.

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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH