 "We are reviewing Prez Trump's 25% tariff, committed to fair trade deal: GoI")
In its first official response to US President Donald Trump's imposition of 25 per cent tariffs on India, the government said it is closely examining the consequences of the move and remains committed to securing a fair and mutually beneficial trade deal.
In a statement issued on Wednesday evening, the Ministry of Commerce and Industry said: “The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications.”
The statement added that discussions between India and the United States have been underway for some time to finalise a trade agreement that is just and beneficial for both sides. “India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” it said.
Protecting local interests
The government reiterated that the interests of domestic farmers, entrepreneurs and small businesses remain a top priority and cited previous negotiations that had similarly prioritised these constituencies. ALSO READ: India to pay 25% tariff plus penalty for Russian oil, defence buys: Trump
“The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,” the statement said. Referring to recent trade arrangements, the ministry added: “The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”
Trump's remarks on India-Russia ties
The announcement of the tariffs came in a post on President Trump’s Truth Social platform, where he described India as a friend but criticised its trade practices and ties with Russia.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” he wrote.
Trump also alleged that India remains one of the largest buyers of Russian military hardware and energy. “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD!”
Tariffs to take effect from August 1
Trump said the new 25 per cent tariff, along with an unspecified penalty, would come into effect next month. “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” he wrote, referring to his campaign slogan.
In a follow-up post, he added: “WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!”
While the Indian government has not issued a direct rebuttal to Trump’s comments, it reiterated its commitment to protecting the national interest through all diplomatic channels.