In response to US President Donald Trump's announcement of new tariffs on Indian goods and a potential 'penalty' for India's energy trade with Russia, Union Commerce Minister Piyush Goyal stated that the Indian government is carefully assessing the implications of the move and will take all necessary measures to protect the country's national interests.
Speaking in both the Lok Sabha and Rajya Sabha, Goyal addressed the recent trade tensions. Many saw his comments as a clear refutation of Trump's previous 'dead economy' jab at India. Goyal emphasised India's remarkable economic progress over the past ten years, pointing out that the nation has gone from being among the "fragile five" to becoming the world's fastest-growing major economy and among the top five largest economies worldwide. He also expressed confidence that India would become the world's third-largest economy in a few years.
Goyal provided a timeline of the US tariff actions, explaining that on April 2, the US President had issued an executive order on reciprocal tariffs, with a 10 per cent baseline duty taking effect three days later. The total additional duty on India, including this baseline, was set at 26 per cent. However, the country-specific tariffs were initially suspended for 90 days and then extended until August 1.
The minister informed Parliament that India and the US have been engaged in negotiations for a "fair, balanced, and mutually bilateral trade agreement" since March, with the aim of finalising the first phase by October-November 2025. Several physical and virtual meetings have been held between the two nations' trade representatives.
Also Read: Tharoor warns of fallout after Trump slaps 25% tariff on India
Amidst slogan-shouting from the opposition, Goyal assured the public that the government is closely examining the recent developments. "The Ministry of Commerce and Industry is engaged with all stakeholders, including exporters and industry, for taking feedback on their assessment of the situation," he said. He emphasised that the government's priority is to protect the welfare of farmers, workers, entrepreneurs, and MSMEs and that all steps would be taken to secure and advance India's national interest.
In what appeared to be a message directed at the US and its increasingly protectionist policies, Goyal highlighted India's proactive approach to trade. He mentioned the mutually beneficial trade agreements India has already secured with countries like the UAE, UK, and Australia, and its commitment to similar agreements with other nations. He concluded by expressing the government's confidence in continuing its path of inclusive and sustainable growth to achieve the goal of "Viksit (Developed) Bharat 2047."
Also Read: Rahul backs Trump’s ‘dead economy’ remark, says he spoke facts
Follow us
