India Maintains Calm Over US Tariff Hike, Focuses on Negotiation and National Interest
In response to former US President Donald Trump’s announcement of a 25% tariff on Indian imports, the Indian government has decided not to retaliate, choosing instead to address the issue diplomatically through negotiation, according to top sources.
Trump, citing India’s continued oil trade with Russia and long-standing trade barriers, declared the new tariffs effective from August 1, along with additional penalties. Despite concerns raised by industry experts and political opponents, the government remains unfazed, emphasizing India’s economic resilience and strength.
“India is not going to retaliate. Silence is the best answer. We will resolve this at the negotiation table,” a senior government source stated, downplaying the move’s immediate impact. Drawing parallels to India’s response during the 1998 Pokhran nuclear tests, the source added, “We were sanctioned back then as a smaller economy. Today, we are self-reliant. There is no need to panic.”
Commerce Minister Piyush Goyal addressed Parliament, confirming that the Ministry of Commerce and Industry is actively consulting exporters, MSMEs, and other stakeholders to assess potential sectoral impacts. He assured that all necessary steps will be taken to safeguard national interests, especially those of farmers, workers, and entrepreneurs.
Meanwhile, political reactions varied, with Rahul Gandhi endorsing Trump’s controversial “dead economy” remark and accusing the government of economic mismanagement.
The Indian government, however, remains committed to a balanced, strategic response, reaffirming its dedication to strengthening trade ties while protecting its own economic foundations.
