The Indian government on Wednesday acknowledged US President Donald Trump’s announcement to impose a 25 per cent tariff on Indian exports from August 1, and said it is closely studying the implications of the move.
In a statement, the Commerce Ministry confirmed that India and the United States had been negotiating a balanced and mutually beneficial bilateral trade agreement over recent months.
“We remain committed to that objective,” the Ministry said. “The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.”
It further added that the Centre would take all steps necessary to safeguard national interest, citing its stance in other recent trade agreements, including the Comprehensive Economic and Trade Agreement with the UK.
Trump Accuses India of Trade Barriers and Russia Ties
Trump made the announcement via a post on Truth Social, declaring, “India will be paying a tariff of 25 per cent starting August 1.”
He also warned of an additional penalty tariff for India’s continued purchase of Russian energy, a measure applied broadly to countries not pressuring Moscow to cease its war in Ukraine.
In a sharply worded statement, Trump accused India of imposing ‘the most strenuous and obnoxious non-monetary trade barriers of any country’.
He claimed India had ‘always bought the vast majority of its military equipment from Russia’ and remained Russia’s largest energy buyer alongside China.
He added, “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.”
Trump further signed off his post with ‘MAGA’ (Make America Great Again), highlighting his continued campaign rhetoric.
Farm Sector Access Remains Sticking Point
India has long resisted US demands for zero tariffs on American exports. The India-US trade tensions stem partly from differences over access to Indian agricultural markets, a sector that supports millions of livelihoods.
The US, along with the European Union and other countries that have finalised deals, has been pushing for complete tariff elimination on its goods. However, India has hesitated, especially in areas that could harm domestic sectors, notably agriculture.
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