Responding to Trump's 25 per cent tariff imposition, the Centre said it would take firm steps to secure the interests of farmers, entrepreneurs, and MSMEs, while continuing to engage in trade negotiations with the US.
The Centre, in its official statement, asserted that it has taken note of the announcement while emphasising that India remains committed to negotiating a fair bilateral trade agreement with the United States.
India and the US are currently negotiating a Bilateral Trade Agreement (BTA), which was launched in February 2025 during Prime Minister Narendra Modi’s visit to the White House
In a measured response to US President Donald Trump's announcement of a 25 per cent tariff on Indian goods, the Ministry of Commerce and Industry said it would take firm steps to secure the interests of farmers, entrepreneurs, and MSMEs, while continuing to engage in trade negotiations with the US.
The ministry's response came after Trump, in a post on social media, said that the US has a massive trade deficit with India and also criticised India for buying a 'vast majority' of its military equipment and energy from Russia and announced a 25 per cent tariff on India.
The Centre, in its official statement, asserted that it has taken note of the announcement while emphasising that India remains committed to negotiating a fair bilateral trade agreement with the United States.
"The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications. India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," the ministry said in the statement on Wednesday evening.
"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", the statement further read.
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Stressing that the Centre places the 'utmost importance on protecting and promoting the welfare of farmers, entrepreneurs, and MSMEs (Micro, Small and Medium Enterprises)', the ministry said, "The Government attaches the utmost importance to protecting and promoting the welfare of our 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."
Trump Announces 25 Per cent Tariff; Negotiation Underway
India and the US are currently negotiating a Bilateral Trade Agreement (BTA), which was launched in February 2025 during Prime Minister Narendra Modi’s visit to the White House.
A day after announcing a 25 per cent tariff rate on India alongside an unspecified 'penalty' tariff for purchasing Russian energy and arms, US President Donald Trump said his administration was still negotiating the final tariff rate with India.
"Well, we’re negotiating right now", Trump told a reporter who had asked what the additional penalty would be for India for 'support to Russia.'
Right ahead of the reciprocal tariffs deadline, Trump on Monday said that the trade agreement with India has not yet been finalised and hinted that India could face import duties as high as 25 per cent.
In a post on social media, Trump said that the US has a massive trade deficit with India and also criticised India for buying a “vast majority" of its military equipment and energy from Russia as he announced a 25 per cent tariff on India.
The announcement came just two days before the August 1 deadline to impose reciprocal tariffs.
"I think so. (They will pay) 25%," Trump told reporters on Tuesday when asked if that was a possible tariff rate for New Delhi.
"India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can't do that", Trump told reporters, as per media reports.
