New Delhi: India has issued its first official response to former U.S. President Donald Trump’s surprise announcement of a 25% tariff and additional penalties on Indian exports, describing the move as under review and affirming that the country will “take all necessary steps to secure our national interest.”
In a carefully worded statement issued by the Ministry of Commerce and Industry on Wednesday evening, the Indian government emphasized its ongoing commitment to a fair and balanced bilateral trade agreement with the United States, while noting that negotiations have been underway for several months.
“The Government has taken note of the statement by the U.S. President on bilateral trade. The Government is studying its implications. India and the U.S. 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 statement said.
The ministry also reiterated that India places utmost importance on protecting the interests of farmers, entrepreneurs, and MSMEs (Micro, Small and Medium Enterprises), and pointed to India’s recent Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom as an example of its successful trade strategy.
“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements,” the statement added.
On his social media platform Truth Social, Donald Trump declared that India would face a 25% tariff plus a penalty—effective August 1—citing its continued oil imports from Russia and military ties with Moscow.
Despite calling India a “friend”, Trump accused New Delhi of maintaining high tariffs and “strenuous and obnoxious” non-monetary trade barriers. He also criticised India’s energy and defence dealings with Russia amid the ongoing Ukraine conflict.
“INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” Trump wrote in all caps.
In another post, Trump reiterated an old complaint, stating:
“WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!”
Trump’s move echoes recent threats from American politicians including Senator Lindsey Graham, who warned of economic consequences for nations continuing to buy Russian oil.
“Here’s what I would tell China, India, and Brazil: If you keep buying cheap Russian oil to allow this war to continue, we’re going to tear up the hell out of you, and we’re going to crush your economy,” Graham had said.
India has consistently defended its right to secure energy at competitive prices, regardless of geopolitical pressure.
External Affairs Minister S. Jaishankar has previously stated that India will always prioritize the well-being of its citizens and act in its own economic interest.
Indian High Commissioner to the UK Vikram Doraiswami also pushed back earlier this week, questioning the logic of penalizing India when its traditional energy sources were already restricted due to Western sanctions.
“We are the third-largest consumer of energy in the world. We import over 80% of our needs. What would you have us do—switch off our economy?” Doraiswami asked.
While Trump’s announcement has triggered uncertainty in trade circles, India’s initial reaction has remained calm and strategic. Officials are expected to continue diplomatic and trade-level talks with U.S. counterparts while closely monitoring further developments.
The coming weeks will be crucial in determining whether the tariff threat escalates into a full-fledged trade standoff—or becomes a negotiating chip in the ongoing discussions between two of the world’s largest democracies.
