‘India Comes First’: Goyal Defends Trade Strategy After Trump’s Tariff Warning

India Reviewing Trump’s 25% Tariff Order, Will Prioritise National Interest: Piyush Goyal.

Union Commerce Minister Piyush Goyal on Thursday told Parliament that India is closely examining the implications of the 25% tariff announced by U.S. President Donald Trump on Indian goods and will take all necessary steps to protect the country’s economic interests.

Addressing the Lok Sabha, Goyal said the U.S. issued an executive order on April 2, 2025, imposing a 10% baseline tariff on Indian imports starting April 5. A total tariff of 26% was initially scheduled to come into effect on April 9, but it was deferred twice—first by 90 days, and then until August 1, 2025.

“The government is assessing the impact of this move,” Goyal said. “We are in consultation with exporters, industry leaders, and other stakeholders to understand sector-wise implications. The welfare of farmers, MSMEs, entrepreneurs, and workers remains our top priority.”

He added that India, which has risen from the 11th to the 5th largest economy over the past decade, will not compromise its interests in any trade negotiations.

Trump’s Tariff Justification

On Wednesday, President Trump announced a 25% tariff on all Indian goods, citing India’s “high tariffs,” “onerous trade barriers,” and continued military and energy ties with Russia. In a post on his platform Truth Social, Trump said:

“India is our friend, but we’ve done relatively little business with them because their tariffs are far too high… They also have the most strenuous and obnoxious non-monetary trade barriers of any country.”

He also criticised India’s defence and energy partnerships with Moscow:

“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest energy buyer… at a time when everyone wants Russia to stop the killing in Ukraine.”

Trump concluded:

“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1.”

In a follow-up post, he added:

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

India’s Official Position

The Indian government responded by confirming it has taken note of the announcement and is analysing its potential impact.

“We remain committed to a fair, balanced, and mutually beneficial trade relationship with the U.S.,” an official statement said. “Like in all past negotiations, including the recent Comprehensive Economic and Trade Agreement with the UK, we will take steps aligned with our national interest.”