In the wake of US President Donald Trump’s announcement of a 25 per cent tariff and additional penalty on Indian exports to America effective August 1, Union Commerce and Industry Minister Piyush Goyal on July 31 assured Parliament that India will take all necessary steps to safeguard national interest.
Delivering a suo motu statement in both Houses, Goyal said the government was examining the implications of the tariffs and actively consulting with all stakeholders to assess the situation. “The government attaches the utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry. We will take all necessary steps to secure and advance our national interest,” he asserted.
The announcement by the US President came just weeks ahead of the sixth round of bilateral trade negotiations between the two countries, scheduled to begin on August 25. The talks, initiated in March 2025, aim to finalise a balanced and mutually beneficial Bilateral Trade Agreement (BTA). According to Goyal, “In March 2025, India and the US started talks for a just, balanced and mutually beneficial Bilateral Trade Agreement (BTA). The goal of this was to finish the first stage of the Agreement by October-November 2025…”
Trump’s decision has added a new layer of complexity to the already sensitive trade negotiations. The US is pressing India for duty concessions on a wide range of sectors including industrial goods, electric vehicles, wines, petrochemical products, agricultural commodities, dairy products, apples, tree nuts, and genetically modified crops. However, New Delhi has consistently held its ground, especially on agriculture and dairy, sectors that are politically and economically sensitive.
#WATCH | US Tariffs | Union Minister of Commerce and Industry Piyush Goyal says, "…The Government is confident that we will continue our swift journey of inclusive and consistent development towards the goal of Viksit Bharat 2047. Aatmanirbharta ki ore Bharat aatmavishwas se… pic.twitter.com/ixgaCaqtSO
— ANI (@ANI) July 31, 2025
India has never opened up its dairy sector in any of its past free trade agreements, and the government is unlikely to deviate from this stance now. With nearly 700 million people dependent on agriculture for their livelihood, any reduction in tariffs could have severe implications for rural livelihoods and national food security. Goyal’s statement reinforced this sensitivity, highlighting the government’s commitment to protecting vulnerable sectors.
In his address to the Lok Sabha, Goyal detailed the timeline of the US tariff imposition. “On April 2, 2025, the US President issued an executive order on reciprocal tariffs…10 per cent baseline duty in effect since April 5, 2025. With a 10 per cent baseline tariff, a total of 26 per cent tariff was announced for India. Full country-specific additional tariff was scheduled to come into effect on April 9, 2025. But on April 10, 2025 this was extended initially for 90 days and then extended till August 1, 2025,” he said.
The surprise move by Washington has come at a time when India has hardened its position on providing duty concessions, particularly in areas where US demands clash with Indian economic priorities. India is seeking removal of additional US tariffs, especially on steel and aluminium, currently attracting duties of 50 per cent, and automobiles, which face 25 per cent tariffs. In return, India is also pushing for concessions in its labour-intensive sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
Under the rules of the World Trade Organisation (WTO), India retains the right to impose retaliatory tariffs, and the government has left all options open in this regard.
#WATCH | US Tariffs | Union Minister of Commerce and Industry Piyush Goyal says, "In less than a decade, India came out of 'Fragile Five' economies and it has now become the fastest-growing economy of the world. On the basis of the hardwork of reforms, farmers, MSMEs and… pic.twitter.com/0lfLIVv7CK
— ANI (@ANI) July 31, 2025
Goyal assured that a comprehensive assessment is underway. “Government is examining the impact of the recent events. Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue. Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” he told Parliament.
He also noted that both countries have already completed five rounds of trade negotiations, with a sixth round planned to conclude the first phase of the BTA. “Both sides had four rounds of physical meetings in New Delhi and Washington DC, and several virtual meetings,” Goyal said, emphasising the sustained diplomatic effort to resolve outstanding trade issues.
Despite the recent developments, Goyal painted an optimistic picture of India’s economic trajectory. “In less than a decade, India came out of ‘Fragile Five’ economies and it has now become the fastest-growing economy of the world. On the basis of the hardwork of reforms, farmers, MSMEs and industrialists, we have come in the top 5 economies of the world from the 11th largest economy. It is expected that we would be the third largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy…,” he said.
#WATCH | US Tariffs | Union Minister of Commerce and Industry Piyush Goyal says, "Government is examining the impact of the recent events…We will take all necessary steps to safeguard our national interest."
"Government is examining the impact of the recent events. Ministry of… pic.twitter.com/C6rHFIRRI5
— ANI (@ANI) July 31, 2025
Highlighting the structural reforms and initiatives taken over the last decade, Goyal credited programmes like Make in India for transforming the economy. “Today, international communities and economists see India as a ‘bright spot’ in the global economy. India is contributing around 16 per cent to global development. Over the last decade, India has taken transformational steps under the Make in India initiative,” he said.
In his concluding remarks, Goyal expressed confidence in India’s ability to navigate global headwinds. “The Government is confident that we will continue our swift journey of inclusive and consistent development towards the goal of Viksit Bharat 2047. Aatmanirbharta ki ore Bharat aatmavishwas se badh raha hai.”
The minister’s statements underscored India’s calibrated yet assertive approach in dealing with the latest tariff challenge, balancing national interests with diplomatic negotiations. As the next round of trade talks approaches, New Delhi has made it clear that its economic sovereignty and the welfare of its people will remain non-negotiable.
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