Govt studying impact of US tariff announcement, says committed to trade deal
This story was originally published at 21:07 IST on 30 July 2025
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--Trade min: Took note of statement by US President on bilateral trade
--Trade min: Studying implications of US President's statement
--Trade min: Committed to concluding fair, mutually beneficial US trade deal
--Trade min: To take all steps to secure national interest in US trade deal
--Trade min:To protect, promote welfare of our farmers, entrepreneurs, MSMEs
NEW DELHI – The government is studying the implications of the 25% tariff and additional penalty announced by US President Donald Trump on Indian goods being shipped to the country from Friday, the commerce ministry said in a statement. "The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and micro, small, and medium enterprises," the ministry said.
Trump made the announcement on his social media platform Truth Social, confirming the worst fears of Indian exporters. "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," he wrote. The 25% tariff is only slightly lower than the 26% duty that Trump had announced in April, which was eventually suspended till Aug. 1.
Trump's announcement came amid New Delhi's negotiations with Washington for a "mutually beneficial bilateral trade agreement" which India had thought could protect it from US tariffs. "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," the ministry said. "We remain committed to that objective."
A delegation of officials from the US is likely to arrive in New Delhi on Aug. 25 for the next round of negotiations for the proposed trade deal, a commerce ministry official had said Tuesday. Both sides concluded the fifth round of negotiations on Jul. 18. The government "will take all steps necessary to secure our national interest, as has been the case with other trade agreements", the ministry further said in its statement.
Trump's penalty on India--beyond the 25% tariff--is for procuring military equipment and energy from Russia. The 25% duty plus penalty could significantly hurt India's exports, as the US is India's top export destination with a share of nearly 20% in total outbound shipments. India exported goods worth $86.51 billion to the US in the financial year 2024-25 (Apr-Mar) and had a trade surplus of $40.82 billion, according to commerce ministry data.
Following Trump's announcement, some experts said the tariff may be a temporary problem and the trade deal could lower the tariff, giving India's exporters some relief. Notably, Trump's announcement of tariff on imports from India was different from his announcements for other countries. Trump had shared official letters sent by the US to countries detailing the tariffs they would face, but the announcement for India came in a regular post on Truth Social. End
US$1 = INR 87.42
Reported by Priyasmita Dutta
Edited by Rajeev Pai
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