NEW DELHI – Union Commerce & Industry Minister Piyush Goyal assured the Lok Sabha that the central government will take all necessary steps to protect India’s national interests. His comments came a day after US President Donald Trump announced a 25% tariff on Indian goods, citing the country’s purchases of Russian oil and weapons.
Goyal stated that the government is currently examining the full implications of Trump’s decision, which took effect on August 1. He explained that India and the US had been engaged in negotiations for a “balanced and mutually beneficial” Bilateral Trade Agreement (BTA) since March of this year, with an aim to conclude the first stage by October or November.
Detailing the timeline of the US tariff actions, Goyal noted that an executive order on reciprocal tariffs was issued on April 2, with a 10% baseline duty effective from April 5. A country-specific additional tariff, bringing the total to 26% for India, was initially scheduled for April 9 but was postponed until August 1, 2025.
In a statement on his social media platform, Truth Social, President Trump announced the 25% tariff on Wednesday, criticizing India for its “massive trade deficit” with the US and for its strong ties with Russia. Despite calling India a “friend,” Trump specifically condemned New Delhi for its role as a major buyer of Russian oil and weapons amid the ongoing conflict in Ukraine.
Speaking to reporters outside the White House, Trump claimed that India is one of the world’s highest tariff-imposing nations, with some duties reaching 175% or more. “We’re going to see, we are negotiating with India right now,” he said, indicating that the tariffs are part of the ongoing trade talks. The new tariffs, along with a yet-to-be-specified “penalty” for trade with Russia, mark a significant escalation in US-India trade relations.
