President Trump Announces 25% Tariff on India; Piyush Goyal Clarifies in Parliament India is Committed to Protecting Domestic Industries and National Interest.
New Delhi: U.S. President Donald Trump made a major announcement regarding India, stating that he would impose a 25 percent tariff on all imports from India starting August 1st. Trump also mentioned economic penalties. He stated that India trades relatively little with the United States and imposes very high duties. Trump also raised concerns about India's purchase of defense and fuel materials from Russia.
What Were Trump's Complaints?
Trump said that India is the country with the highest tariffs in the world and erects non-tariff barriers in the way of trade. He alleged that India continues to purchase military equipment and oil from Russia, while the world wants to sanction Russia due to the Russia-Ukraine war.
Piyush Goyal's Response in Parliament
Following Donald Trump's announcement, Commerce and Industry Minister Piyush Goyal made a statement in the Indian Parliament on Thursday, making it clear that India will not compromise on its national interest. He said that trade talks with the United States are ongoing, and India is prepared to protect its domestic industries.
Four Rounds of Talks Have Taken Place
Goyal informed that four rounds of talks have taken place with the United States regarding trade. Tariffs were discussed in these rounds, and India had agreed to a limit of 10-15% import duties. However, the talk of a 25% tariff and penalty is completely unacceptable. India is moving forward in the direction of becoming self-reliant and will protect its industries from any kind of foreign pressure.
India's Trade Contribution
Piyush Goyal also said in Parliament that India's contribution to global growth is approximately 16%, and the country is continuously increasing its production and exports. He said that India wants balanced and fair trade with the world, but if any country forcibly imposes conditions, India will not bow down.
Opposition Targets the Government
Following Donald Trump's announcement, opposition parties surrounded the central government. Congress General Secretary Jairam Ramesh said that Prime Minister Modi should take inspiration from former Prime Minister Indira Gandhi and take a firm stance instead of succumbing to American pressure. He wrote on social media platform X (formerly Twitter) that Modi's friendship with Trump like 'Howdy Modi' has no meaning anymore.
