US President Donald Trump’s decision to double tariffs on Indian goods to 50% has sent shockwaves through trade and diplomatic circles, escalating a high-stakes standoff between the world’s largest and fastest-growing democracies. The tariff hike, announced August 6, 2025, as a response to India’s ongoing purchases of Russian oil—plunges half of India’s US-bound exports into jeopardy and puts Indian exporters at a clear disadvantage against other Asian rivals.
Against this backdrop, Hotmail founder and entrepreneur Sabeer Bhatia ignited debate with his provocative suggestion on X (formerly Twitter):
“Trump just raised tariffs on Indian goods to 50%. India should seize the moment—slash tariffs on US goods to 0%. Yes, zero. It would be the boldest move for the Indian economy—driving competition, innovation, and growth. Time to think smart, not react small.”
Trump just raised tariffs on Indian goods to 50%. India should seize the moment – slash tariffs on US goods to 0%. Yes, zero. It would be the boldest move for the Indian economy – driving competition, innovation, and growth. Time to think smart, not react small.
— Sabeer Bhatia (@sabeer) August 6, 2025
Bhatia’s call for a unilateral reduction of tariffs stands in sharp contrast to the tit-for-tat trade moves unfolding so far. While the Indian government has condemned Trump’s aggressive measures as “unfair, unjustified, and unreasonable,” with officials threatening reciprocal action, Bhatia argues that an open Indian market would force innovation, attract top-quality products, and pressure the US to reconsider its trade stance.
Economists and industry observers have mixed views. Some warn that going to zero-tariff unilaterally could leave Indian manufacturers vulnerable, while others see merit in forcing domestic industries to compete globally. Notably, a PHD Chamber of Commerce report finds that even with the new tariffs, the impact on India’s exports and economy will be marginal, with an estimated 1.87% drop in US-bound exports and a 0.19% dip in GDP.
In conclusion, while Trump’s trade offensive represents a serious test for India’s export sectors, Sabeer Bhatia’s radical proposal reframes the crisis as a potential inflection point. Rather than getting trapped in retaliatory escalation, India could “think smart,” open its economy, and set the stage for new growth in the post-tariff era. It’s a bold gambit—one that challenges not just government policy, but the very way India sees its place in the world.
