"Will Take All Steps For Nation's Interest": Piyush Goyal On Trump's Tariff Shocker

A day after US President Donald Trump announced a 25% tariff on Indian exports and an unspecified "penalty" because of the country's energy purchases from Russia, Commerce Minister Piyush Goyal has said the Centre is studying the implications of the move and will take all necessary steps to safeguard India's national interest. 

Speaking in the Lok Sabha and then the Rajya Sabha on Thursday, Mr Goyal also said India has gone from being listed as a 'fragile' economy to being on track to becoming the third-largest economy in the world. This statement is being seen as a response to Mr Trump's "dead economy" jibe at India.

Mr Goyal said the US president had, on April 2, issued an executive order on reciprocal tariffs and a 10% baseline tariff had come into effect three days later. The additional duty on India, including the baseline tariff, was set at 26%. The country-specific tariffs were then suspended for 90 days initially, and further till August 1.

The minister informed Parliament that India and the US began negotiations on a fair, balanced and mutually bilateral trade agreement in March, with the aim of finalising the first phase by October-November 2025. The first physical meeting was held in New Delhi in March, and four more meetings were held in New Delhi and Washington DC. Several virtual meetings have also been held, he said.

"The implications of the recent developments are being examined by the government. The Ministry of Commerce and Industry is engaged with all stakeholders, including exporters and industry, for taking feedback on their assessment of the situation. 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," the minister said amid slogan-shouting by the opposition.

"In just over a decade, India has rapidly transformed from being one of the 'fragile five' to the fastest growing major economy in the world. We have risen from the 11th-largest economy to one of the top five economies... It is also widely expected that we will become the third-largest economy in a few years. Today, international institutions and economists see India as the bright spot in the global economy. India has contributed to almost 16% of global growth," he emphasised.   

Mr Goyal said the government is taking measures to promote India as the manufacturing hub of the world and exports have also steadily gone up over the past 11 years. 

In what appeared to be a message to the US and Mr Trump, he continued, "In an increasingly protectionist world, India has done mutually beneficial trade agreements with the UAE, UK, Australia and others. We are also committed to similar trade agreements with other countries... The government is confident that we will continue our fast-paced journey of inclusive growth and sustainable development towards the goal of Viksit (Developed) Bharat 2047."

In a post on Truth Social earlier on Thursday, Mr Trump wrote, "I don't care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let's keep it that way."