National Times Bureau, July 31, 2025: India will act decisively to protect its national interest following the United States’ announcement of fresh tariffs, Commerce and Industry Minister Piyush Goyal assured Parliament on Thursday. This comes a day after U.S. President Donald Trump declared a 25 per cent tariff plus additional penalties on Indian exports to America, effective August 1, citing India’s continuing purchases of Russian crude oil and military equipment.
Goyal, in a suo motu statement delivered in both Lok Sabha and Rajya Sabha, said the government is reviewing the implications of these tariffs and is actively consulting stakeholders including farmers, exporters, MSMEs and industry representatives. He emphasized that the welfare of these groups remains a top priority and that India will take all necessary steps to ensure their protection and advancement in global trade.
The tariffs come at a critical juncture, as both countries are engaged in talks to finalise a comprehensive Bilateral Trade Agreement (BTA). The sixth round of negotiations is scheduled to take place in New Delhi from August 25. Goyal’s remarks assume significance in the context of India’s resistance to U.S. demands for wider market access in agriculture and dairy sectors, which remain politically sensitive. India, in turn, is seeking import duty relaxations for its labour-intensive sectors, such as gems and jewellery, auto parts and textiles.
President Trump’s unexpected move was accompanied by harsh rhetoric targeting India’s economic policies and its ties with Russia. “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump said, further alleging that India’s tariffs remain among the highest in the world and have discouraged meaningful U.S.-India trade.
Despite these tensions, Goyal highlighted India’s transformation over the past decade from being one of the “Fragile Five” economies to becoming the fifth-largest in the world. He credited the growth to the reform-driven agenda of the government, the resilience of the MSME sector, and India’s skilled workforce. He projected confidence that India would emerge as the third-largest economy in the coming years, contributing nearly 16 per cent to global growth.
Goyal also underscored that India’s export performance has improved steadily over the last eleven years, bolstered by initiatives like Make in India. He noted that in a world increasingly leaning towards protectionism, India has pursued mutually beneficial trade agreements with key global partners including the UAE, UK, Australia, and the EFTA bloc. He reiterated India’s commitment to securing similar agreements in the future, with a clear focus on benefiting Indian farmers and ensuring national food security.
While the new tariffs have injected fresh strain into U.S.-India trade ties, the upcoming round of negotiations in August will be crucial in determining the trajectory of bilateral relations. Both sides are aiming to conclude the first phase of the trade agreement by the fall of 2025, with the possibility of a smaller interim deal being signed ahead of the final BTA.
