"Will take all steps to secure national interest": India responds to Trump tariff, reiterates commitment to 'fair' deal with US

Taking note of a statement by the US President on bilateral trade, the government has said it is studying its implications, and that India remains committed to achieving a "fair, balanced and mutually beneficial" trade agreement with the US. Hinting at the potential points of contention between India and the US, the Ministry of Commerce & Industry said for the government, protecting and promoting the welfare of farmers, entrepreneurs, and MSMEs is paramount, and that it'll always give the highest priority to the national interest.

"The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications. 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. The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. 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," the statement from the Ministry said.

Earlier, US President Donald Trump said India will pay a tariff of 25% and a "penalty" for indulging in business with Russia in areas of energy and military equipment. Trump's statement comes as the two countries have failed to reach an agreement on bilateral trade, despite five rounds of talks, though talks are still on.

Trump acknowledged India as a "friend", though asserting that both countries have done very little business. Trump accused India of imposing high tariffs on US goods, calling them "strenuous" and "obnoxious".

"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," Trump said on his social platform Truth.

He also said India is a major buyer of Russia's arms and the largest buyer of energy. He criticised the country for doing business with Russia at a time when all other countries want the Putin-led country to stop "killings" in Ukraine. "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 the killing in Ukraine — All things not good! India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August First. Thank you for your attention on this matter. MAGA!" Trump asserted.

Though Trump has made his intentions on imposing tariffs on India clear, trade experts here say these measures could be temporary as the talks between both countries are still on, with the sixth round scheduled for the end of August. The government, despite being hopeful of signing a trade deal with the US, has been resistant to Trump's demands, especially with regard to opening up the country's dairy and agriculture sectors for the US.

Trump's reciprocal tariffs on targeted countries, including India, will come into effect on August 1, 2025. The White House has also made it clear that this time, there won't be any extensions to the deadline. "August 1, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go," US Commerce Secretary Howard Lutnick said.

Notably, India has already signed a mega trade deal with the UK, which allows zero-duty access to 99% of India’s exports to the United Kingdom. The agreement is expected to see bilateral trade between the two countries double from the current $56 billion in the next five years. The deal also exempts Indian professionals from UK Social Security payments for three years.