Following US President Donald Trump’s bombshell announcement of a 25% reciprocal tariff on Indian goods, effective August 1, coupled with an unspecified penalty for Russian purchases, the Indian government has adopted a cautious stance. Trump justified the tariffs by claiming India’s trade policies are “obnoxious” and among the most restrictive globally, severely hindering US trade.
In a public post on Truth Social, Trump celebrated his tariff-driven economic agenda, proclaiming its success in making “America great and rich again” and countering a “decades-long onslaught of tariffs.” He expressed triumph, stating the US had moved from a “dead country” to the “hottest,” positioning tariffs as vital to this economic revival.
The Indian Ministry of Commerce and Industry confirmed it is “studying its implications” and highlighted ongoing negotiations with the US for a “fair, balanced, and mutually beneficial bilateral trade agreement.” This response suggests India’s preference for diplomatic resolution over immediate escalation.
The statement further emphasized the government’s commitment to “protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,” indicating that domestic economic interests will be paramount in its future actions. The imposition of these tariffs marks a significant point of tension in the US-India relationship, setting the stage for careful deliberation and potential conflict.