‘Focused on India’s Interest’: Piyush Goyal Tells Parliament After Trump’s Tariff Blow

Union Commerce Minister Piyush Goyal addressed the Lok Sabha on Thursday, asserting that the Indian government is thoroughly examining the implications of fresh tariffs imposed by U.S. President Donald Trump on Indian goods. He assured Parliament that the government remains committed to protecting India’s national interest amid these new trade developments.

Goyal explained that on April 2, 2025, President Trump issued an executive order on reciprocal tariffs, which introduced a 10% baseline duty effective from April 5. As part of this move, India was subjected to a total tariff of 26%. A full, country-specific additional tariff was initially scheduled to take effect on April 9, but was postponed — first for 90 days, and later extended until August 1, 2025.

“The Government is examining the impact of the recent events,” Goyal said. “The Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue.”

He further emphasized that India places high importance on safeguarding the interests of its economic sectors.

“Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” he stated.

Highlighting India’s economic progress over the past decade, Goyal noted that the country has advanced from being the 11th largest economy to the fifth-largest globally, driven significantly by the contributions of farmers and MSMEs. He affirmed that India will firmly protect its economic interests during any trade negotiations.

Trump’s 25% Tariff Declaration

On Wednesday, U.S. President Donald Trump announced a 25% tariff on all goods imported from India, set to take effect from August 1. The measure includes an additional, unspecified penalty related to India’s continued purchase of Russian crude oil and military equipment.

Posting on his platform Truth Social, Trump criticized India’s high tariff walls and non-tariff barriers, stating:

“India is our friend, but we have… done relatively little business with them because their tariffs are far too high… and they have the most strenuous and obnoxious non‑monetary trade barriers of any country.”

He also lashed out at India’s long-standing defense and energy ties with Russia:

“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE- ALL THINGS NOT GOOD!”

Trump concluded his post with a clear warning:

“INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”

He later reiterated his displeasure over India’s Russia relations:

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

India’s Official Response

In response to Trump’s statement, the Indian government issued an official communication on Wednesday stating:

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

India and the United States have been negotiating a mutually beneficial bilateral trade agreement in recent months, aimed at resolving trade disputes and deepening economic cooperation.

“We remain committed to that objective,” the statement added.

Reaffirming its stance, the government said:

“The government attaches the utmost importance to protecting and promoting the welfare of 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.”