Trade Talks Will Not Compromise National Interest: India's Firm Response to Trump’s 25% Tariff
India has issued a sharp and measured response to US President Donald Trump’s imposition of a 25% tariff on Indian exports, with Commerce Minister Piyush Goyal making it clear that New Delhi will not sacrifice its national interest at the altar of any trade deal.
Goyal, addressing Parliament on Thursday, defended India’s economic strength and trajectory, directly pushing back on Trump’s jibe calling India a “dead economy.” Goyal highlighted that India is now the fastest growing major economy and is on course to become the third-largest in the world by GDP, up from the eleventh position just a few years ago.
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The 25% tariff, set to take effect August 1, is being framed by Washington as a penalty for India’s continued military and energy partnerships with Russia. Trump has also hinted at additional penalties, accusing India of shielding behind high tariffs and “obnoxious” trade barriers.
The Indian Ministry of Commerce and Industry issued a formal response, stating that while trade talks are still underway, “the government will take all steps necessary to protect the welfare of our farmers, entrepreneurs, and MSMEs.”
The ministry emphasized that India’s approach to global trade agreements, including with the UK, has always prioritized core national interests -- and the US is no exception.
While Trump claims the tariff action is justified due to India’s BRICS alignment and defense ties with Moscow, Indian officials have expressed concern over the unilateral nature of the announcement.
“We have been engaged in negotiations on concluding a fair, balanced and mutually beneficial trade agreement,” the ministry said. “We remain committed to that objective.”
The trade standoff has further strained relations, especially as Trump continues to use provocative language and target India’s economic policies.
His administration has accused India of over-reliance on Russian oil and arms, while simultaneously expanding strategic deals with Pakistan, including a new oil exploration agreement.
Despite the rhetoric, observers suggest that Trump’s aggressive posturing may be aimed at applying negotiating pressure ahead of a final bilateral agreement.
White House economic adviser Kevin Hassett confirmed this view, stating: “President Trump is frustrated with the progress we've made with India but feels that a 25% tariff will remedy the situation.”
India, however, appears unwilling to be pressured into making rushed concessions.
With Trump warning of further penalties unless talks conclude quickly, and India holding firm on sovereignty and self-interest, the coming days may determine whether the two democracies can find common ground -- or slide deeper into a prolonged trade cold war.