Will protect national interest: India’s reaction to Trump’s imposition of a 25% tariff

New Delhi said it would take decisive action to protect the interests of farmers, business owners, and MSMEs while continuing to participate in trade talks with Washington, D.C., only hours after US President Donald Trump placed a 25% duty on Indian imports.

“Over the past few months, India and the US have been negotiating to reach a fair, balanced, and advantageous bilateral trade agreement. We are still dedicated to that goal,” India declared in a statement.

Citing the recently inked Free Trade Agreement with the UK, India stated that it is sensitive to protecting the interests of domestic players even as it opens its markets to foreign players.

“The government places the highest priority on safeguarding and advancing the well-being of our farmers, business owners, and MSMEs. As has been the case with previous trade accords, particularly the most recent Comprehensive Economic and Trade Agreement with the UK, the Government will take all necessary measures to protect our national interest,” the statement added.

India’s tariff structure has drawn repeated criticism from Trump, dating back to his first term and even before he took oath for the second, with him calling New Delhi a “very big abuser” when it comes to levying duties on US products.

India’s reluctance to open up its farm and dairy industries to the United States—a political self-goal that no government party at the Center is willing to commit to—remained the main point of friction between the two parties even after multiple rounds of talks.

Some of India’s best-performing export industries are the focus of the recently levied levies. The 25% list includes automobiles, auto parts, steel, aluminum, smartphones, solar modules, maritime products, jewelry, stones, and some processed foods and agricultural products. However, essential minerals, semiconductors, and pharmaceuticals have been left off.

Economists predict that India will soon have a new chance to develop closer economic ties with other nations, investigate untapped markets, and turn inward at the same time. This will lead to reforms as global supply chains are rebalanced in the face of shifting geopolitics brought on by Trump’s assertive trade policies.

However, if Trump’s tariffs are maintained for the remainder of FY26, analysts predict that India’s GDP may contract by 0.2% to 0.5%.

Trump had earlier declared that, starting on August 1, India will impose a 25% tariff on Indian imports in addition to other sanctions. He pointed to long-standing trade restrictions and India’s ongoing oil imports from Russia as the main causes of the action.

Trump emphasized that although India is regarded as a friend, trade connections between the two nations have remained restricted because of what he called exorbitant tariffs and onerous non-monetary barriers in a post on his website Truth Social.