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India is actively engaged in negotiations with the United States after President Donald Trump announced a 25 per cent tariff on Indian exports, set to take effect from August 1.
Responding to the move, Commerce Minister Piyush Goyal on Thursday assured Parliament that the government is closely assessing its implications and will take “all necessary steps” to safeguard the country’s national interests.
Speaking in the Lok Sabha, Goyal made a suo motu statement, saying the government is in touch with exporters, industries, and stakeholders to assess the impact of the steep tariff increase.
“Government is examining the impact of the recent events. Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue,” Goyal said.
He added that the welfare of farmers, entrepreneurs, MSMEs, and industrial stakeholders remains the government's top priority.
“Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” he added.
Talks on bilateral trade agreement ongoing
Goyal also revealed that India and the US began negotiations in March 2025 for a "just, balanced and mutually beneficial" Bilateral Trade Agreement (BTA). The aim was to conclude the first stage of the deal by October-November 2025.
This development comes amid heightened trade tensions after Trump made the tariff announcement via his social media platform Truth Social, citing India’s trade practices and purchases from Russia.
India Responds to Trump’s Remarks, Reaffirms Commitment to Farmers and MSMEs
In a statement issued by the Commerce Ministry, the Indian government said it had taken note of the tariff decision and is “studying its implications.”
"We remain committed to that objective. The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs," it said.
The ministry emphasized that India will take all measures “necessary to secure our national interest,” as it has done in other trade pacts, such as the recent Comprehensive Economic and Trade Agreement (CETA) with the UK.
Trump's Justification: High Indian Tariffs, Russian Energy Imports
Trump’s post accused India of maintaining “the most strenuous and obnoxious non-monetary trade barriers of any country,” and criticized its defense and energy ties with Russia.
“India will be paying a tariff of 25 per cent starting on August 1,” Trump wrote on Truth Social.
“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! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” he said.
He concluded the post with a taunt: “MAGA” (Make America Great Again).
Sticking Points: Agriculture access and tariff disputes
One of the key sticking points in the India-US trade talks remains the opening of Indian markets to American agricultural products, a move that could have significant repercussions on India’s farm sector, which employs a large portion of the population.
Meanwhile, the US continues to push for zero tariffs on its exports—terms that several other nations and the European Union have reportedly accepted.
As negotiations continue, India has signaled that it will not compromise on its core interests, particularly in agriculture, MSMEs, and industry.
English (US) ·