Commerce and Industry Minister Piyush Goyal assured Parliament on Thursday that India will take all necessary steps to safeguard its national interest in response to US President Donald Trump’s announcement of 25% tariffs on Indian exports, effective August 1, coupled with an unspecified penalty for India’s purchase of Russian oil and military equipment. The move, which threatens to disrupt $191 billion in bilateral trade, has prompted India to intensify consultations with stakeholders, including farmers, exporters, MSMEs, and industry bodies, to assess the tariffs’ impact.

Addressing both houses of Parliament in a suo motu statement, Goyal emphasized, “The government prioritizes the welfare of our farmers, workers, entrepreneurs, and MSMEs. We will take every measure to secure our national interest.” The Ministry of Commerce is actively engaging with stakeholders to formulate a response, with Goyal noting that India’s economic resilience—having risen from the “Fragile Five” to the world’s fifth-largest economy—positions it to navigate this challenge. He cited the International Monetary Fund’s projection of 6.4% GDP growth for India in FY26 and FY27, underscoring its status as a global economic bright spot contributing 16% to world growth.

The tariffs, announced on Wednesday, come amid ongoing negotiations for a Bilateral Trade Agreement (BTA) launched in March 2025, aiming to boost US-India trade to $500 billion by 2030. Five rounds of talks have occurred, with a US trade team scheduled to visit India on August 25 for the sixth round, targeting an interim deal before the first phase concludes by October-November. India is pushing for duty concessions on labor-intensive sectors like gems, jewelry, textiles, and auto parts, while resisting US demands for access to its agriculture and dairy markets, which employ 44% of its workforce and are politically sensitive.

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Trump’s decision follows a 26% tariff announced on April 2, 2025, with a 10% baseline duty effective from April 5, initially paused for 90 days and extended to August 1. His remarks, dismissing India’s economy as “dead” and criticizing its high tariffs—some as high as 175%—have drawn sharp rebuttals. Goyal countered, “In a decade, we’ve transformed from the 11th to the fifth-largest economy, soon to be the third, driven by Make in India and our skilled workforce.” He highlighted India’s trade agreements with the UAE, UK, Australia, and EFTA, signaling openness to fair deals but firmness against pressure.

Analysts estimate the tariffs could impact $2.9 billion of India’s $71 billion goods exports to the US, particularly affecting textiles, pharmaceuticals, and electronics. In retaliation, India notified the WTO of plans to impose equivalent levies on US goods, a move Goyal justified as protecting national interests. Atul Keshap of the US-India Business Council stressed the need for a “win-win” interim deal, noting agriculture’s cultural and economic significance.

As India navigates this trade turbulence, Goyal’s resolve reflects a broader strategy to leverage its growing economic clout. With negotiations ongoing and the US team’s visit looming, India aims to secure preferential tariffs over competitors like Japan and Vietnam, while safeguarding its farmers and MSMEs. The outcome will test India’s diplomatic agility as it balances global partnerships with domestic priorities, with Viksit Bharat 2047 as the guiding vision.

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