India Responds To Trump's 25% Tariffs, Says Protecting Farmers, MSMEs, 'Securing National Interest'

The Indian government has "taken note" of the US President Donald Trump's remarks and is "studying" the implications of the 25% tariffs, as well as additional penalties linked to purchases of Russian military equipment and energy.

Over the past few months, India and the United States have been engaged in negotiations to conclude a "fair, balanced and mutually beneficial" bilateral trade agreement, the Ministry of Commerce and Industry said in a statement on Wednesday.

Despite at least five rounds of in-person discussions and regular sectoral engagements, the two sides have yet to finalise an interim or "mini" trade deal.

"The Government remains committed to that objective," the ministry said. "We attach the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs."

"The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK," it added.

The development comes as US President Donald Trump announced a 25% tariff on Indian exports ahead of the Aug. 1 deadline. Trump also hinted at further unspecified penalties linked to India's continued imports of Russian military equipment and energy.

Trump's announcement was made via a post on Truth Social, where he accused India of maintaining some of the highest tariffs in the world, along with "strenuous and obnoxious non-monetary trade barriers". He argued that the US did “relatively little business” with India over the years and pointed to a “massive trade deficit” with the country.

Until earlier this week, the exact rate for India had not been finalised. Wednesday’s confirmation of a 25% levy now places India at the higher end of this tariff band.

The proposed penalty for India’s continued purchases of Russian defence and energy supplies signals a broader shift in US trade policy that is increasingly intertwined with geopolitical considerations. This adds an additional layer of complexity to the India–US trade talks, which had already been hampered by differences over digital trade, agricultural access, and tariff structures.

With the sixth round of negotiations likely on Aug. 25 in New Delhi, both sides face mounting pressure to find common ground. While India has reiterated its commitment to a constructive trade partnership, it has made clear that domestic economic interests and sovereignty will not be compromised.