India-US Tariff War / Will India respond to Trump's tariff? Know what could be the next step

India-US Tariff War: US President Donald Trump has announced a 25 percent tariff on India, after which there has been a political uproar in India. The opposition has started cornering the government on this issue and is demanding accountability. Union Commerce and Industry Minister Piyush Goyal put forth his point on this matter on Thursday, but before that it is important to understand how India will respond to this tariff and will there be any retaliatory action?

India's strategy: Solution through dialogue

India has made it clear that it will not take any such step, which will adversely affect the relations between the two countries. The government is giving priority to resolving this issue through diplomatic talks. Union Minister Piyush Goyal said, "National interest is the top priority of our government. The effects of the tariff imposed by the US are being thoroughly assessed. The Modi government considers the interests of farmers, entrepreneurs, workers, exporters, MSMEs and all stakeholders paramount." Four rounds of talks in Delhi-Washington

Piyush Goyal said that four rounds of meetings have been held between India and the US in Delhi and Washington. In March 2025, the two countries started negotiations for a mutually beneficial trade agreement, with the aim of finalizing the first phase of the agreement by October-November 2025. Goyal said that the government is assessing the effects of recent developments and all necessary steps will be taken.

Consultation with stakeholders

The Union Minister said that the Ministry of Commerce and Industry is in constant dialogue with all stakeholders. He said, "We are committed to securing and advancing the interests of the country. India has strengthened its economy in the last few years and today we have emerged from the Fragile Five to become the fastest growing economy in the world."

India's trade achievements

Goyal mentioned the increase in Indian exports in the last 11 years. He said that India has entered into beneficial trade agreements with UAE, UK, Australia and European Free Trade Association (EFTA). The government is committed to such agreements with other countries as well. Goyal expressed confidence that India is moving rapidly towards the goal of 'Developed India-2047'.

Opposition's attack

On the other hand, the Congress accused the government of not raising this issue strongly in Parliament. Congress General Secretary Jairam Ramesh claimed that the trust of friendship between Prime Minister Narendra Modi and Trump has proved to be completely hollow. Ramesh said, "The Commerce Minister did not make any clear statement in Parliament on Trump's tariff and the failure of the trade agreement with America. There was no discussion on issues like 25% tariff by America and additional penalty on trade with Russia and Iran. The country's concerns were not addressed."

Way forward

The Indian government's stand is clear that it wants to follow the path of dialogue and cooperation instead of increasing tension. However, amid increasing pressure from the opposition and political rhetoric, the government will have to ensure that the country's economic interests are protected and India's position remains strong on the global stage.