Trump 50% Tariff on India: Crisis or opportunity? Former G20 official Amitabh Kant weighs in

US President Donald Trump imposed 50% tax on goods from India, which created a big reaction globally. This is likely to create a lot of difficulty for India’s exports. The previous leader of NITI Aayog has said it is a big chance for the country.

New Delhi: US President Donald Trump said he will raise the tax on Indian goods from 25% to 50%. Few people believed the US would treat its key ally, India, this way, especially when the request made was completely unfair and not reasonable at all.

It's also tough to know if Trump will stop here or hit another tariff bomb. Prime Minister Narendra Modi has told the US that India will not give up on the interests of its farmers, ranchers, and fishermen, no matter what. The main idea of what PM Modi said is that he told Trump that for him, personal ties don't matter when it comes to the country's interests, and he is willing to give up those personal relationships if needed.

Amitabh Kant Sees Chance For Major Reforms

In the middle of all this, Amitabh Kant, who used to lead NITI Aayog, has expressed a lot of hope. He believes it is important to fully use this difficult situation for the good of the nation Former G20 Sherpa and Ex-NITI Aayog CEO Amitabh Kant mentioned that the US President has offered a big chance for India by imposing a 50% tariff on its goods, and India can use this opportunity to make major progress in its reforms.

The previous leader of the organization, which serves as a government think tank in India, showing optimism like this can be seen as a major indication. "He said such opportunities are rare." Amitabh Kant, wrote in a post on X that Trump has provided us a once in a generation opportunity to take the next big leap on reforms.
Crisis must be fully utilised.

Trump has provided us a once in a generation opportunity to take the next big leap on reforms.
Crisis must be fully utilised.

— Amitabh Kant (@amitabhk87) August 6, 2025

What This Tariff Mean?

On July 30, Trump announced a 25% tariff on products coming into the US from India. It would start working from 7 August. But just a day before, under the excuse of still buying crude oil from Russia, they raised the tariffs to 25% and 50%, which is the highest in the world. He called India a "friend," but also said there would be consequences if India kept buying weapons and oil from Russia. The new tariff of 25% will start on 27 August.

Putting a 50% tax on imports by the US makes products brought from India into the US much more costly in local stores. Right now, the US has only excluded a few Indian products from the 50% tariff and most Indian goods will be subject to a 50% or higher tariff, which includes a penalty.