Trump Slaps 25% Tariff on Indian Imports, Citing Russian Ties; India Promises to Protect Farmers and Trade Interests

New Delhi (India) July 31: New Delhi declares that it will take decisive action to protect the interests of its farmers, business owners and MSMEs. It continues to participate in trade talks with Washington, D.C.. This happens only hours after US President Donald Trump places a 25% duty on Indian imports.

For the past six months, India and the US have been negotiating to reach a fair, balanced and advantageous bilateral trade agreement. India said, “We remain committed to that objective," in a statement.

India says it will protect farmers and businesses

India cites the recently completed Free Trade Agreement reached with the UK. The country states that it is committed to protecting the interests of domestic players even as it opens its markets to foreign players.

The statement from the Indian government says, "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." 

USA President Trump frequently criticizes India's tariff system. He labels New Delhi a "very big abuser" when it comes to imposing taxes on US goods.

India is reluctant to open up its farm and dairy industries to the United States. It is a political self-goal that no government party at the Center is willing to commit to. It remains the main point of difference between the two parties even after multiple rounds of talks.

Key Sectors Hit

Some of India's best-performing export industries are the focus of the recently imposed taxes. The 25% list includes automobiles, auto parts, steel, aluminum, smartphones, solar modules, maritime products, jewelry, stones and some processed foods and agricultural products. However, essential minerals, semiconductors, and pharmaceuticals have been left out.

Trump points to India’s ties with Russia

Trump had earlier declared that, starting on August 1, he will impose a 25% tariff on Indian imports with other sanctions. He also points to long-standing trade restrictions and India's ongoing oil imports from Russia as the main causes of the action.

Trump emphasizes that although he regards India as a friend, trade connections between the two nations will remain restricted. It happens because of what he called high tariffs and hefty non-monetary barriers in a post on his account on Truth Social.

Aadrika Tayal