India Signals Tough Stand After US Tariff Blow, Says It Will Safeguard National Interest While Pursuing Trade Deal

India has responded to US President Donald Trump’s announcement of a 25 per cent tariff on Indian exports starting 1 August, saying it had taken note of the statement and was evaluating its implications.

“The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications,” the official statement said.

The move comes amid ongoing trade negotiations between the two countries.

India reaffirmed its commitment to concluding a fair, balanced, and mutually beneficial trade agreement with the United States.

Talks have been underway for several months, with both sides aiming to resolve differences over market access, particularly in dairy and agriculture sectors.

The centre underscored that it places the “utmost importance” on protecting the interests of farmers, entrepreneurs, and micro, small and medium enterprises (MSMEs).

It also emphasised that all necessary steps will be taken to safeguard national interest, as demonstrated in other recent agreements, including the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom.

"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 statement said.

"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 added.

Trump had announced the tariffs on his social media platform Truth Social, accusing India of maintaining some of the world’s highest tariffs and non-monetary trade barriers.

He also imposed an unspecified penalty on India for continuing to purchase defence equipment and oil from Russia.

The announcement comes as both countries explore a possible “mini-deal” aimed at reducing tariffs on key Indian exports like steel, aluminium, and auto components.

Negotiations have stumbled over the US’ demand for concessions in India’s dairy and agriculture sectors, which are sensitive due to the potential impact of cheaper American goods on Indian farmers.

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