In a sharp and assertive response to US President Donald Trump’s announcement of a 25% tariff and penalty on Indian imports, effective August 1, the central government has reaffirmed its commitment to protect national interest — with particular focus on the welfare of farmers, entrepreneurs, and micro, small and medium enterprises (MSMEs).
In a formal statement, the government said it had taken note of President Trump’s declaration and is currently studying its implications. However, the Centre made it clear that it remains committed to securing a fair and balanced trade partnership with the US, noting that bilateral negotiations for a mutually beneficial agreement have been underway for several months.
“The government attaches great importance to protecting and promoting the welfare of farmers, entrepreneurs and MSMEs,” the statement read, asserting that this priority remains central to all international trade decisions.
Trump had justified the tariff hike by citing India’s continued import of crude oil from Russia and longstanding trade barriers that, according to him, have hindered US exports. In his social media post, Trump accused India of imposing the “highest tariffs in the world” and maintaining “the toughest and most intrusive trade barriers of any country.”
He further criticised India’s military and energy ties with Russia, saying, “At a time when everyone wants Russia to stop the killings in Ukraine, they are the largest buyers of crude oil from Russia, along with China. This is not good!”
Despite these accusations, the Modi government has held its ground on three key issues that have been flashpoints in Indo-US trade talks:
Refusal to allow genetically modified (GM) crops into India, a decision that protects Indian agricultural biodiversity and supports millions of farmers.
Rejection of US dairy imports, safeguarding the livelihoods of India’s dairy farmers and preserving indigenous cattle-rearing traditions. Continued import of affordable Russian crude oil, ensuring energy security and price stability for Indian consumers. Sources familiar with the talks said the 25% tariff and penalty, while significant, may be a price worth paying to uphold sovereign trade choices that prioritise local welfare over external pressure.
What has raised eyebrows, however, is the silence of some high-profile anti-GM activists in India. Despite the government’s stand aligning with their long-standing concerns about GM crops and agri-giant influence, their lack of vocal support has sparked questions about consistency and credibility.
As seen with other international agreements like the Comprehensive Economic and Trade Agreement with the UK, the Centre reiterated that all steps necessary to uphold India’s national interest will be taken, firmly and unapologetically.
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