India Responds To President Trump's 25% Tariff & Penalty Announcement, Says It Will Safeguard National Interest

New Delhi, July 30: The Government of India has officially responded after U.S. President Donald Trump announced a 25% tariff on Indian imports, along with an additional penalty, effective August 1. The opposition party and Congress leaders are targeting Prime Minister Narendra Modi over the tariff announced by Trump.

In a statement released on Wednesday, the government said it has taken note of the U.S. President’s remarks on bilateral trade and is currently studying their implications.

“India and the U.S. 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 statement said.

The Government has taken note of a statement by the US President on bilateral trade.  The Government is studying its implications: Govt of India

"India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement… pic.twitter.com/cTDLYgbNAR

— ANI (@ANI) July 30, 2025

The government also emphasized that protecting the interests of Indian farmers, entrepreneurs and MSMEs remains a top priority.

“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,” it added.

US President Donald Trump announces 25% tariffs on India starting August 1st.

Posts, "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… pic.twitter.com/eqVj981lGD

— ANI (@ANI) July 30, 2025

Background

President Trump announced the tariff in a series of posts on Truth Social, saying India has some of the highest tariffs and non‑monetary trade barriers in the world and continues to buy military equipment and energy from Russia. He said, “India will therefore be paying a tariff of 25%, plus a penalty, starting on August 1. Thank you for your attention to this matter. MAGA!”

In a follow‑up post, Trump also said, “We have a massive trade deficit with India!!!”

'Country Paying The Price For Modi-Trump Friendship': Congress REACTS After Donald Trump Imposes 25% Tariff On Indian Imports

What’s Next

India and the U.S. have been negotiating a trade deal for months, but the tariff announcement signals growing trade tensions. The Commerce Ministry is expected to consult stakeholders and assess possible retaliatory measures or diplomatic engagement in the coming days.