Govt studying impact of US tariff, penalty, says Minister Goyal in Lok Sabha
This story was originally published at 18:23 IST on 31 July 2025
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--Minister Goyal: Committed to protecting interests of Indian farmers, MSMEs
--Minister Goyal: To take all necessary steps to protect national interests
--Minister Goyal: Govt studying the impact of recent US tariff, penalty
--CONTEXT: Commerce Minister Goyal's comments on US tariff in Lok Sabha
--Minister Goyal: India, US finalised terms of trade deal in Mar
NEW DELHI – The government is currently studying the implications of US President Donald Trump's latest tariff announcement on India, Commerce and Industry Minister Piyush Goyal said in the Lok Sabha on Thursday, adding that his ministry has also been holding meetings with exporters and stakeholders to understand their concerns. Trump Wednesday announced a 25% duty on Indian goods being shipped to the US, and an additional penalty on India for trade ties with Russia.
New Delhi is committed to signing a fair, balanced and mutually beneficial Bilateral Trade Agreement with Washington, Goyal said. The two sides have held five rounds of negotiations, and several virtual meetings so far, he said.
India and the US had finalised the terms of reference for the trade deal at the first round of negotiations on Mar. 29 in New Delhi, Goyal said. In its negotiations with the US, the government has prioritised India's nationals' interest and will continue doing so going ahead, Goyal said. The government will take all necessary steps to protect the interests of farmers, and micro, small and medium enterprises, Goyal added.
Goyal's statement suggests that New Delhi is unlikely to agree to Washington's demand of getting access to India's farm sector under the trade deal. Trump, on multiple occasions, has expressed interest in gaining access to India's agri and dairy market, but India has drawn a clear red line in trade talks when it comes to opening the farm sector. This subject is likely the major point of contention in discussions between India and the US.
The next round of discussions with the US about the trade deal is likely to begin from Aug. 25, more than a fortnight after the US begins collecting the 25% duty on the import of Indian goods along with the announced "penalty" for trade ties with Russia. India and the US in February, while initiating the deal, had set a timeline for concluding the first tranche of the Bilateral Trade Agreement by Fall of 2025.
Meanwhile, Indian exporters are in for a challenging time ahead as the top export destination--with nearly 20% share in India's total outbound shipments--announced 25% tariff and penalties. India had exported goods worth $86.51 billion to the US in 2024-25 (Apr-Mar) and had a trade surplus of $40.82 billion during the period, according to commerce ministry data. End
US$1 = INR 87.60
Reported by Krity Ambey
Edited by Tanima Banerjee
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