New Delhi — In the wake of a significant escalation in trade tensions with the United States, Union Commerce and Industry Minister Piyush Goyal made a detailed statement in the Lok Sabha on Thursday, asserting that the Government of India will take all necessary steps to safeguard the nation’s economic interests.
His remarks came after U.S. President Donald Trump formally announced the imposition of a 25% tariff on Indian goods, effective August 1, along with unspecified penalties targeting India’s continued energy and defense purchases from Russia.
Speaking before Parliament, Goyal confirmed that the government is actively evaluating the full implications of this tariff action and will respond appropriately after a comprehensive analysis.
“The world is watching. India will always act in defense of its national priorities, its citizens, and its economy. We are not just prepared, we are committed,” Goyal said during his speech.
Timeline of the Tariff Dispute: A Breakdown
Commerce Minister Goyal provided a clear chronology of the tariff-related developments, shedding light on the evolution of the situation:
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April 2, 2025: U.S. President Trump issued an Executive Order on Reciprocal Tariffs, indicating the imposition of a baseline 10% duty on imports from select countries, including India.
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April 5, 2025: The 10% baseline tariff officially came into effect.
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April 9, 2025: A country-specific additional tariff of 16% for India was scheduled to be added, bringing the total tariff to 26%.
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April 10, 2025: The implementation was postponed by 90 days, eventually extended until August 1, 2025, which was then declared as the final deadline with no further extensions.
Goyal emphasized that the government had maintained continuous diplomatic engagement with the U.S. during this period to try and resolve the matter amicably through negotiation.
Trump’s Justification: Tariffs, Russia, and Trade Barriers
In a series of posts on Truth Social, former U.S. President Donald Trump stated that while India is regarded as a “friend,” the country has historically imposed exceedingly high tariffs and “obnoxious” non-monetary trade barriers, making bilateral trade with India difficult and “unfair.”
“India has some of the highest tariffs in the world, and they rely heavily on non-tariff barriers to restrict trade,” Trump wrote.
He further alleged that India remains one of Russia’s largest defense and energy partners, despite the global sanctions regime in place due to the ongoing conflict in Ukraine.
“They buy the vast majority of their military equipment from Russia. They’re one of the biggest energy buyers from Moscow, alongside China, even while the world is demanding Russia stop the killing in Ukraine,” Trump said.
In another post, Trump reaffirmed that the August 1 deadline for full tariff enforcement was final and would not be reconsidered or delayed further.
India’s Strategic Response: Cautious Yet Firm
Responding to these aggressive measures, India’s Ministry of Commerce and Industry released a formal statement via the Press Information Bureau (PIB). The ministry emphasized that India is carefully studying the implications of the U.S. President’s announcement and will respond based on the outcome of its review.
“India and the U.S. have been engaged in talks for several months with the objective of concluding a fair, balanced, and mutually beneficial bilateral trade agreement,” the statement read. “We remain committed to that goal.”
Reiterating the government’s core priorities, the statement added:
“India attaches the highest importance to protecting the interests of our farmers, small entrepreneurs, micro and small businesses (MSMEs), and exporters. The government will do whatever it takes to ensure their well-being.”
Piyush Goyal reinforced this message in Parliament, pointing to India’s recent success in negotiating key trade agreements, such as the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, and stressed that India will continue to defend its sovereignty and economic autonomy in all global forums.
Looking Forward: Trade Negotiations and Global Perceptions
This recent development has cast a shadow over India-U.S. trade negotiations, which had been inching toward progress after a long impasse. India’s position has remained firm on several sticking points, including agriculture market access, tariff concessions, and regulations on genetically modified foods—areas where U.S. expectations have repeatedly clashed with India’s domestic priorities.
At a time when India is being increasingly recognized as one of the fastest-growing major economies, global trade dynamics remain fragile. The government’s focus is now on protecting its own trade ecosystem without compromising its strategic autonomy.
In his concluding remarks in the Lok Sabha, Piyush Goyal stressed:
“India’s economic journey is rooted in resilience and dignity. We will never compromise on our core values, and we will always ensure our trade decisions protect the interests of the people of India.”