India Studying Trump’s Tariff Move, Remains Hopeful of Trade Pact

The Indian government on Wednesday said it is closely studying the implications of US President Donald Trump’s announcement to impose a 25% tariff on Indian goods, along with additional penalties, set to take effect from August 1.

Despite the aggressive move by the US, the Indian government maintained that it remains hopeful of finalising a fair, balanced, and mutually beneficial bilateral trade agreement with Washington. The statement came amid growing global concerns over rising trade tensions.

In an official statement, the government assured that it will take all necessary steps to protect national interests, as it has done in other major trade negotiations, including the recently concluded trade agreement with the UK.

President Trump announced the fresh tariff measure citing India’s ongoing purchase of military equipment and crude oil from Russia, describing it as a violation of US strategic policy interests. The announcement included a yet-to-be-detailed penalty in addition to the tariffs.

The Ministry of Commerce and Industry, in consultation with the Ministry of External Affairs and Defence, is evaluating the economic and diplomatic consequences of the move. Officials say India is preparing a comprehensive response while continuing diplomatic channels with the US to prevent any long-term damage to bilateral ties.

Trade experts warned that the new tariffs could impact key Indian export sectors, including pharmaceuticals, textiles, and auto components, at a time when the country is aiming to expand its global trade footprint.

The situation is being monitored at the highest levels, with Indian officials expected to hold further discussions with their US counterparts in the coming days.