Union Commerce Minister Piyush Goyal on Thursday assured Parliament that India is prepared to safeguard its economic interests in response to US President Donald Trump’s decision to impose steep tariffs on Indian goods. Goyal emphasized that the government is monitoring the situation closely and will not compromise the nation’s sovereignty or the welfare of its key economic stakeholders.
India Analysing Full Scope of Tariff Hike Ahead of August
Addressing the Lok Sabha, Goyal said, “On 2nd April 2025, the US President issued an executive order on reciprocal tariffs. A 10% baseline duty came into effect from 5th April, and a country-specific tariff of 26% was proposed for India. This was first set to apply from 9th April but later deferred and extended till 1st August 2025.”
He noted that the Centre is examining the long-term impact of this move and is in active consultation with exporters and manufacturers. “Our top priority is to protect the interests of Indian farmers, entrepreneurs, industrialists, and MSMEs,” Goyal said, while crediting their contribution to India’s economic growth and rise as the world’s fifth-largest economy.
Trump Targets India Over Russian Oil, Arms Imports
The US tariff push was formally initiated by President Trump through a post on Truth Social. While calling India a “friend,” Trump criticized the country’s trade barriers and military ties with Russia.
“India has some of the highest tariffs in the world and has consistently made large purchases of Russian military equipment and energy,” Trump wrote, linking his action to the ongoing war in Ukraine. He added that the 25% tariff “plus penalties” would take effect from August 1, with no further extensions.
Trade Engagements Will Continue, But Sovereignty is Paramount
Reacting to Trump’s statement, India’s commerce ministry said the government had “taken note” and is currently evaluating the implications. In a PIB statement, the ministry reaffirmed India’s commitment to a “fair, balanced, and mutually beneficial” trade partnership with the US.
“We attach the highest importance to promoting the welfare of our domestic industries. India will continue to act in the national interest, as it has done in agreements like the recent Comprehensive Economic and Trade Agreement with the UK,” the statement said.
With the deadline fast approaching, Goyal’s speech hinted at a mix of back-channel diplomacy and strategic defence. While no direct retaliation has been announced yet, officials say the government may consider WTO consultation or other diplomatic measures if the tariffs go into force.
