Hours after US President Donald Trump imposed a 25 per cent tariff on India citing the country's decision to purchase Russian oil and weapons, the central government on Wednesday said that it will take all necessary steps to secure the nation's national interest.
In a statement, the Ministry of Commerce and Industry said that the Centre has taken note of Trump's statement, adding that it is currently studying its implications. The government said that India and the United States have been engaged in negotiations "on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months ".
"We remain committed to that objective," the release from the Ministry of Commerce and Industry read. "The Government attaches 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," the Ministry of Commerce and Industry said.
Trump announces 25% tariffs on India
Earlier in the day, Trump called India a "friend" of the US, but expressed disappointment over New Delhi's decision to keep purchasing Russian oil and weapons, as he announced his administration's decision to impose a 25 per cent tariffs on New Delhi.
Trump further said that the US has a "massive trade deficit" with India, justifying his decision to impose tariffs.
"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," he posted on Truth Social.
"All things not good! India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first," he added.
No clarity on imposition of 25% duty
However, it is not clear yet whether the 25 per cent duty will be imposed in addition to the existing 10 per cent baseline tariffs. Also, there is no clarity on exact quantum of the penalty.
On April 2, Trump had announced a 10 per cent tariff on all countries. Besides, he had also announced high reciprocal tariffs on several nations, including India. The implementation, however, was suspended till August 1, as the US began trade negotiations with several countries.
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