U.S.'s 25% Tariff on Indian Goods: Government Clarifies Stand

After US President Donald Trump announced a 25% tariff on Indian goods, the Indian government has begun a thorough study of this decision. Commerce and Industry Minister Piyush Goyal expressed confidence in a statement to Parliament that the government will take all necessary measures to protect national interests.

On April 2, 2025, Trump issued an executive order regarding the implementation of 'Reciprocal Tariff'. Under this, a decision was announced to impose import duties ranging from 10% to 50% on various countries. A total tariff of 26% was to be applied on India. This tariff was to come into effect from April 9, but it was deferred for 90 days. Later, this period was extended until August 1.

The government clarified that the Ministry of Commerce is in constant communication with exporters, industries, and other relevant stakeholders. A comprehensive study is underway on what impact these tariffs will have on trade policy.

Goyal said that India has recently achieved economic stability and is now one of the fastest-growing economies in the world. He mentioned that India has moved from the 11th position to the 5th and will soon become the third-largest economy. Discussions on the bilateral trade agreement (BTA) between India and the United States began in March 2025. The first phase of this agreement is targeted to be completed by October-November 2025. However, India has taken a cautious stance as the United States is demanding the opening of Indian agriculture and dairy sectors.

The government's statement clarified that efforts are underway to establish a balanced and mutually beneficial agreement between the United States and India, which will protect the interests of farmers, MSMEs, and entrepreneurs. The government has previously protected national interests in the agreement with the UK, and a similar approach will be maintained with the United States.