India Responds To Trump’s 25% Tariff Announcement : ‘India Vows to Defend National Interest’

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India Responds To Trump's 25% Tariff Announcement : 'India Vows to Defend National Interest'

Hours after US President Donald Trump announced a 25% tariff on Indian goods, New Delhi has responded with a firm commitment to protect its national interests, particularly those of its farmers, entrepreneurs, and small to medium-sized enterprises (MSMEs). While expressing its dedication to ongoing trade negotiations with Washington, the Indian government has signaled it will take necessary measures to counter the impact of the new duties.

In an official statement, India confirmed its continued engagement in talks aimed at a “fair, balanced and mutually beneficial bilateral trade agreement.” The government underscored its priority to safeguard domestic players while opening its markets, citing the recently concluded Comprehensive Economic and Trade Agreement with the UK as a model. “The Government will take all steps necessary to secure our national interest,” the statement read, emphasizing its focus on the welfare of its core economic sectors.

The tariffs, set to take effect on August 1, target several of India’s most significant export industries. The list includes automobiles and auto components, steel, aluminum, smartphones, solar modules, marine products, gems and jewellery, and select agricultural and processed food items. Notably, key sectors such as pharmaceuticals, semiconductors, and critical minerals have been excluded from the 25% levy.

Despite the immediate challenge, some economists view this as an opportunity for India to diversify its economic partnerships. They suggest that the aggressive US trade policies could spur India to forge deeper ties with other countries, explore new markets, and accelerate domestic reforms as global supply chains undergo recalibration.

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