India to Defend National Interest Amidst US Tariffs and Penalties, Says Commerce Minister Piyush Goyal
In a strong and carefully articulated response to U.S. President Donald Trump’s announcement of sweeping 25% tariffs and penalties on Indian exports, Commerce and Industry Minister Piyush Goyal declared on Thursday that India will take all necessary steps to protect and promote its national interest, while remaining committed to fair and strategic international trade partnerships.
Speaking via a suo motu statement in both Houses of Parliament, Goyal assured the nation that the central government is fully aware of the implications of the U.S. decision, and is actively consulting a wide spectrum of stakeholders—including farmers, MSMEs, exporters, industry bodies, and policy experts—to craft a measured, effective response.
“The government attaches the highest importance to protecting the welfare of our farmers, workers, entrepreneurs, exporters, and industrial sectors. We are reviewing all dimensions of the U.S. tariffs and will take all necessary steps to advance and secure India’s national interests,” Goyal said.
Trump’s Sudden Tariff Announcement Sparks Tensions
The new tariff regime announced by President Trump, which includes a blanket 25% duty on all Indian exports and an additional penalty—ostensibly for India’s continued purchase of Russian crude oil and military hardware—was a diplomatic shock.
The move came just days before the sixth round of bilateral trade negotiations, scheduled for August 25, raising questions about the intent and trajectory of ongoing trade talks.
Trump, while announcing the tariffs, lashed out at India and Russia’s close ties, saying:
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We’ve done very little business with India. Their tariffs are too high—some of the highest in the world.”
His comments were widely viewed as undiplomatic and inflammatory, especially considering India and the U.S. have been engaged in progressive trade negotiations since March 2025, with a shared goal to more than double bilateral trade to $500 billion by 2030 (from the current $191 billion).
India’s Trade Strategy: Balanced, Fair, and Growth-Oriented
Piyush Goyal clarified that India remains committed to pursuing a balanced and mutually beneficial bilateral trade agreement (BTA) with the U.S., but not at the cost of national interests, especially in sensitive sectors like agriculture and dairy, where American demands for lower tariffs have been met with cautious resistance from Indian negotiators.
India, in turn, is pushing for concessions in sectors such as gems and jewellery, auto components, and other labour-intensive industries, which are vital for employment and exports.
The two countries have already completed five rounds of trade talks, with the sixth round scheduled later this month, and aim to conclude the first phase of the BTA by fall (October-November) 2025. An interim trade deal is also under consideration to fast-track deliverables.
India’s Economic Transformation & Global Standing
Goyal also used the opportunity to highlight India’s remarkable economic transformation over the past decade.
India has evolved from being one of the ‘Fragile Five’ economies to becoming the fastest-growing major economy in the world. We’ve moved from being the 11th largest economy to being among the top five, and we are on course to become the third-largest economy globally shortly, he said.
India today contributes to nearly 16% of global economic growth, a statistic that underscores its emerging status as a global economic powerhouse.
The minister attributed this rise to key reforms, domestic entrepreneurship, and policy initiatives such as ‘Make in India’, which is driving the country’s emergence as a manufacturing hub, powered by a young, skilled, and innovative workforce.
Strengthening Strategic Trade Alliances
In a world increasingly characterized by protectionism, Goyal reaffirmed India’s proactive role in forging equitable trade pacts. He cited recent mutually beneficial free trade agreements with the UAE, UK, Australia, and EFTA countries, and expressed India’s openness to similar deals with other economies.
“India is not only safeguarding its interests but also contributing positively to global trade systems. Our MSMEs, farmers, and industrial sectors form the backbone of this journey,” he noted.
