In its first official response to the sudden announcement by US President Donald Trump of a 25 per cent tariff on Indian exports—in addition to an unspecified "penalty", the Indian government has made a measured and strategic response, reporting that it is considering the action and remains focused on safeguarding the country's economic interests.
Reiterating restraint for once in the face of Trump's typically combative tone, the Ministry of Commerce and Industry stated that it had noted the development and reiterated India's continued engagement with the US to realize a balanced and mutually beneficial trade arrangement.
"The Government has noted a US President's statement on bilateral trade. The Government is examining its implications. India and the US have been negotiating for the past few months on signing a fair, balanced and mutually beneficial bilateral trade arrangement. We are committed to that goal," the ministry stated in a release issued Wednesday evening.
Emphasizing the necessity of protection of Indian stakeholders' interests, the ministry pointed out that farmers, entrepreneurs, and MSMEs (Micro, Small and Medium Enterprises) continue to be at the center of India's trade agenda. It also referred to the recent Comprehensive Economic and Trade Agreement with the United Kingdom as an example of India's adherence to balanced trade negotiation.
"The Government will do everything required to protect our national interest, as with previous trade deals, including the most recent Comprehensive Economic and Trade Agreement with the UK," added the statement.
Trump Calls India a "Friend," But Announces Punitive Measures
Earlier in the day, Trump went on his Truth Social website to announce the new 25 per cent tariff on Indian products, listing India's continued energy and defense relationships with Russia as a primary reason. Along with the tariff, he also announced an additional "penalty," though no details were given.
Despite the punitive tone, Trump referred to India as a friend of the United States, before launching into a criticism of New Delhi’s trade practices and its reliance on Russian imports.
"Remember, even though India is our friend, we have done relatively little business with them over the years because their Tariffs are way too high, among the highest in the World, and they have the most difficult and obnoxious non-monetary Trade Barriers of any Country. They have also always purchased a huge majority of their military equipment from Russia, and are Russia's biggest purchaser of ENERGY, in addition to China, at a time when everybody wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD!" Trump wrote.
He further added, "INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, BEGINNING AUGUST FIRST. THANK YOU FOR YOUR TIME ON THIS QUESTION. MAGA!"
In a second post, Trump echoed a common criticism of US-India trade: "WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!"
US Warnings and India's Position
The announcement is the latest after recent threats made by American legislators. US Senator Lindsey Graham had sent a dire warning to countries buying oil from Russia, naming India, China, and Brazil. "Here's what I would say to China, India and Brazil: If you continue buying low-cost Russian oil to enable this war to keep going on, we're going to rip the hell out of you, and we're going to break your economy," warned Graham.
India has always stood by its choices on energy. External Affairs Minister Dr. S. Jaishankar has time and again insisted that India will do what is in its interest, buying oil from whatever source provides the best value.
The Indian High Commissioner to the UK, Vikram Doraiswami, also came back strongly against Western criticism, pointing to India's challenges as one of the world's biggest energy consumers.
"We've been pushed out of the energy market to a great extent, and the prices have increased. We are the world's third-largest energy consumer. We import more than 80% of our commodity. What do you want us to do? Turn off our economy?" he pointed out, adding that India's energy ties with Russia are because it has been priced out of other markets.
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