NEW DELHI: US President Donald Trump has labelled the Indian economy as “dead” while announcing new 25% tariffs on Indian imports from August 1. Trump’s outburst, delivered via a social media post, accused India of clinging to Russia and imposing high tariffs and “obnoxious” trade barriers on American goods.

“I don’t care what India does with Russia. They can take their dead economies down together,” Trump said, adding a veiled warning about India’s oil and military deals with Moscow in a social media post.

The comments sparked political chaos in India, with Congress leader Rahul Gandhi seizing the moment to slam the Modi government. “Trump is right. Everyone knows the economy is dead except the PM and FM,” Gandhi told reporters.

Also Read: Trump to impose 25% tariff on India, plus fine for buying oil from Russia

Gandhi accused the Modi-led BJP of destroying India’s economy, defence, and foreign policy, claiming it now bows to Trump’s diktats. “Modi will do whatever Trump tells him to do,” he added, criticising the silence in Modi’s Parliament speech on Trump’s jibe, China’s threats, or growing US-Pakistan ties.

Rahul further attacked the government on X: “THE INDIAN ECONOMY IS DEAD. Modi killed it.” He listed demonetisation, GST, Adani ties, and the collapse of MSMEs and farmers’ welfare as evidence of economic failure.

India is now the largest buyer of Russian oil, rising from 0.2% to nearly 40% post-Ukraine war. Trump’s fresh penalties mark the first US trade action against India over Russian links.

The BJP fired back, calling Gandhi’s remarks “shameful” and “anti-India,” accusing him of siding with foreign voices to defame the country.

-Agencies/PTI Inputs