New tariffs won’t derail India’s trade & economic strategy, say government sources

The Indian government is taking a measured stance following US President Donald Trump’s announcement of an additional 25% tariff on Indian goods, doubling the existing duties, coming into effect from August 7. Senior government officials say the move, while concerning for exporters, will not alter India’s broader strategic and economic priorities.

According to government sources, the Prime Minister’s Office is expected to convene a meeting with top officials from the Ministry of External Affairs and the Ministry of Commerce and Industry on Wednesday to assess the potential impact and formulate a calibrated response.

“The tariffs may pose challenges for certain Indian exporters,” a senior official said, “but they do not impact India’s ability to pursue its energy security goals, including the continued import of Russian oil.”

India, the source said, remains committed to protecting its national interests. The government believes that unless the United States imposes direct sanctions on Russia, there is no obligation for India to alter its current trade relationships.

While the additional duties are viewed as a protectionist measure aimed at boosting domestic U.S. manufacturing, officials in New Delhi are confident that India’s diversified trade partnerships and ongoing diplomatic engagement with Washington will help contain any long-term fallout.