The Indian government on Wednesday said it has “taken note” of US President Donald Trump’s announcement imposing a 25% tariff plus penalties on India effective August 1 and is closely studying its implications.

In a statement, the Ministry of Commerce and Industry emphasized that India remains committed to concluding a fair and mutually beneficial trade agreement with the United States.

“We remain committed to that objective,” the statement said, adding that the government attaches utmost importance to protecting the welfare of farmers, entrepreneurs, and MSMEs.

The ministry further assured that “all necessary steps will be taken to secure the national interest,” highlighting India’s consistent approach in other trade agreements, including the recent Comprehensive Economic and Trade Agreement with the UK.

Trump’s Harsh Words on Trade and Russia Ties

President Trump, in a social media post on his Truth Social account, criticized India’s high tariffs and trade barriers while announcing the new tariffs:

“India has always bought a vast majority of their military equipment from Russia and is Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — all things not good! India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st.”

Trump also pointed to the US’s massive trade deficit with India, claiming that New Delhi’s tariffs are “among the highest in the world.”

India-US Trade Negotiations Under Strain

The announcement comes just two days before the tariff deadline amid ongoing negotiations for an interim trade deal that many hoped would prevent the escalation. However, the discussions have been slowed by disagreements, particularly over US demands such as:

• Opening up India’s agriculture and dairy sectors,
• Allowing remanufactured goods,
• Accepting genetically modified (GM) feed,
• Adopting US rules on digital trade and product standards.

India has expressed reservations, particularly regarding agriculture and dairy, which are vital to the livelihoods of millions.