India Will Prioritise Its Interests Amid Trump’s Tariff Remarks: Piyush Goyal

India Studying Trump’s 25% Tariff Move, Will Act in National Interest: Piyush Goyal.

Union Commerce Minister Piyush Goyal on Thursday told Parliament that the Indian government is closely examining the implications of the 25% tariff announced by U.S. President Donald Trump on Indian goods and will take all necessary steps to safeguard national interest.

Making a statement in the Lok Sabha, Goyal said, “On 2nd April 2025, the U.S. President issued an executive order on reciprocal tariffs. A 10% baseline duty came into effect on 5th April, with a total of 26% tariffs applied to Indian goods. A country-specific additional tariff was scheduled to begin on 9th April, but it was initially deferred by 90 days and later extended until 1st August 2025.”

Goyal said that the Ministry of Commerce and Industry is in consultation with exporters, industries, and other stakeholders to understand the full impact of the tariff hike. He assured that the welfare of farmers, workers, MSMEs, and industrialists remains the government’s top priority.

“We are examining the situation carefully and gathering inputs from all sectors. The government is fully committed to protecting India’s economic interests,” he said.

Goyal also highlighted India’s economic progress over the past decade, moving from the 11th to the 5th largest global economy, and credited this growth to the contributions of farmers and MSMEs. He affirmed that India would continue to protect its strategic and economic interests in all trade negotiations.

Trump’s Tariff Order Targets India

On Wednesday, President Trump announced a sweeping 25% tariff on all Indian imports effective August 1, citing India’s “high tariffs,” “non-monetary trade barriers,” and continued defense and energy ties with Russia. In a post on his platform Truth Social, Trump also hinted at an additional penalty for India’s purchase of Russian crude oil and military equipment.

“India is our friend, but their tariffs are too high, and their trade barriers are the most strenuous and obnoxious of any country,” he wrote. He criticized India’s reliance on Russian military equipment and energy, stating: “They have always bought the vast majority of their military equipment from Russia and are Russia’s largest energy buyer, along with China—at a time when the world wants Russia to stop the killing in Ukraine.”

He concluded the post with a warning: “India will therefore be paying a tariff of 25%, plus a penalty, starting August 1.”

Later, Trump doubled down, dismissing India’s ties with Moscow and saying, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

India’s Official Response

Reacting to the announcement, the Indian government said it had taken note of the statement and was studying its implications. An official statement reiterated India’s commitment to fair and balanced trade while emphasizing that all necessary steps will be taken to safeguard the country’s economic interests.

“India remains engaged in discussions with the U.S. to reach a mutually beneficial trade agreement,” the statement added. “The government will act decisively, as it has done with other recent trade agreements, including the Comprehensive Economic and Trade Agreement with the UK.”