NEW DELHI— The Indian government said Wednesday that it is closely monitoring U.S. President Donald Trump’s decision to impose a 25% tariff on Indian exports starting Friday, and is assessing the potential impact.
In a statement, the Commerce Ministry confirmed that India and the United States have been engaged in ongoing negotiations to reach a fair, balanced, and mutually beneficial trade agreement.
“We remain committed to that goal,” the ministry said. “The government places the highest priority on protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.”
The statement emphasized that India will take all necessary measures to safeguard its national interest, as it has with other trade pacts, including the recently concluded Comprehensive Economic and Trade Agreement with the United Kingdom.
The response came after Trump posted on Truth Social that India would face a 25% tariff beginning August 1, along with additional penalties for continuing to purchase energy from Russia.
“India will be paying a tariff of 25 percent,” Trump wrote. “They will also face a penalty for buying Russian energy.”
Trump had previously proposed sweeping “secondary tariffs” of 100% for any nation continuing to buy Russian energy if Moscow did not agree to a ceasefire in Ukraine.
In his post, Trump criticized India’s trade policies, claiming, “While India is our friend, we’ve done relatively little business with them over the years because their tariffs are among the highest in the world.” He accused India of imposing “the most strenuous and obnoxious non-monetary trade barriers of any country.”
Trump also pointed to India’s long-standing defense and energy ties with Russia. “They’ve always purchased the vast majority of their military equipment from Russia, and they are Russia’s largest energy buyer, along with China, at a time when the world wants Russia to stop the killing in Ukraine,” he wrote.
He concluded the message with, “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. MAGA.”
The United States has been pushing for zero tariffs on its exports, a condition accepted by many countries and the European Union in recent trade deals.
A key point of contention in U.S.-India negotiations remains the American demand for greater access to Indian agricultural markets—a politically sensitive issue in a country where farming remains the backbone of the economy. (Source: IANS)
