Trump Tariff Won’t Deter India: Goyal

New Delhi: A day after US President Donald Trump announced a 25 per cent tariff, plus penalties, on Indian exports to the US from August 1, Union commerce and industry minister Piyush Goyal said India is studying the development and will take all necessary steps to safeguard and promote the national interest.

“The commerce ministry is engaged with all stakeholders, including exporters and industry, to gather their assessment of the situation," Goyal said.

Responding to Trump's remark that India is a "dead economy," Goyal said India has moved from being labelled "fragile" to being on track to become the world's third-largest economy. "India is currently the world's fastest-growing major economy and, in a few years, has risen from the 11th-largest to the 5th-largest, on the strength of reforms and the efforts of farmers, MSMEs, and industrialists," he said, speaking in the Lok Sabha and later in the Rajya Sabha on Thursday.

The minister added that the government is examining the implications of the tariffs and consulting all stakeholders, including farmers, exporters, MSMEs, and industry bodies. "The government attaches the utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs, and all sections of industry. We will take all necessary steps to secure and advance our national interest," he noted.

Trump's surprise announcement on Wednesday imposed a 25 per cent tariff on all goods coming from India starting August 1, along with an unspecified penalty related to purchases of Russian crude oil and military equipment. Goyal's remarks come as the government has hardened its stance on offering duty concessions to the US in the agriculture and dairy sectors, key American demands in trade talks with India.

After the announcement, Trump again criticised India and Russia for their close ties, saying he did not care what India does with Moscow. "We have done very little business with India; their tariffs are too high, among the highest in the world," he added.

Goyal said that over the last decade, the government has taken several measures to promote India as a global manufacturing hub under the Make in India initiative. "In an increasingly protectionist world, India has concluded mutually beneficial trade agreements with the UAE, UK, Australia, and EFTA countries, and we remain committed to similar agreements with others. We are consistently working for the welfare of farmers and Indian agriculture to promote prosperity and ensure food security," he said.