'The government will take all necessary steps to protect national interests', India's first reaction on US tariffs:

News Topical, Digital Desk : In its first reaction after Donald Trump announced 25% tariff and 'penalties' on goods exported from India to the US, the Central Government said that the government is studying the implications of the move and will take all steps to "protect its national interests".

Committed to negotiating bilateral trade agreement

In a balanced statement issued by the Government of India, the Ministry of Commerce and Industry said that it has taken note of the announcement and emphasized that India is committed to negotiating a fair bilateral trade agreement with the US. The ministry also said that negotiations on this trade agreement have been going on for months.

Government is studying the effects

"The government has taken note of the US President's statement on bilateral trade. The government is studying its implications. India and the US have been negotiating a fair, balanced and mutually beneficial bilateral trade agreement for the last few months. We are committed to this objective," the ministry said in a statement issued on Wednesday evening.

Emphasising that the central government attaches “utmost importance to protecting and promoting the welfare” of farmers, entrepreneurs and MSMEs (micro, small and medium enterprises), the ministry also referred to the recent free trade agreement with the United Kingdom. It further said, “The government will take all necessary steps to protect its national interests, as has been done in the case of other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK.”

25% tariff from August 1

Let us tell you that US President Donald Trump on Wednesday announced a 25 percent duty on India from August 1 amid signs of some deadlock in the ongoing talks between the two countries on the Bilateral Trade Agreement (BTA). Apart from this, Trump also decided to impose additional penalty for buying military equipment and crude oil from Russia. This surprising announcement has been made at a time when just a day earlier Indian officials had said that a US trade team would visit India from August 25 to negotiate a trade agreement. This announcement is being seen as a strategy to put pressure on India to accept the demands of America, which has recently signed favorable trade agreements with major partners like Japan, Britain and the European Union (EU).

You will also have to pay a 'fine' for purchasing from Russia

Trump described India's trade policies as 'the toughest and most unpleasant' in a post on social media. The US President said, "Everything is not fine! That's why India will have to pay a 25 percent duty from August 1 and also a 'fine' for purchases from Russia." This fine was imposed because India has made large purchases of oil and military equipment from Russia. India's crude oil imports from Russia were 0.2 percent of total purchases before the Russia-Ukraine war, which has now increased to 35-40 percent. After China, India is the largest buyer of Russian oil. However, the US President described India as his 'friend' in a social media post. He said, "India is our friend, but we have done relatively little trade with them over the past several years, because their tariffs are very high, which are 'the highest' in the world. They have 'the toughest and most unpleasant' non-monetary trade barriers." He said that apart from this, India has bought its military equipment and energy products from Russia when everyone wants Russia to stop killing in Ukraine.