India stays firm on Russia ties, farm sector as Trump imposes fresh tariffs

A day after US President Donald Trump announced a 25 per cent tariff and unspecified penalty on Indian goods starting August 1, top government officials met to deliberate India’s response. With broad consensus on avoiding retaliation, officials reiterated New Delhi’s commitment to protecting its national security interests and agriculture sector.

Government sources admitted surprise at the announcement, which came while negotiations were ongoing. A US trade team was scheduled to visit New Delhi on August 25 for the sixth round of talks. “Let us wait and watch how the situation evolves. The ball is in the US court,” a senior official said, adding that the government awaits clarity on the structure and scope of the proposed tariff and penalty.

No compromise on core interests, officials say

While India does not intend to retaliate immediately, officials asserted that the country would not succumb to US pressure on issues involving defence ties with Russia or domestic dairy and agricultural interests. The government also noted the example of Brazil, whose president Luiz Inacio Lula da Silva defied Trump’s tariff threats. As a result, the US issued a long list of exemptions for Brazilian goods.

Goyal: Govt to take all steps to safeguard national interest

In a statement to Parliament on Thursday, Commerce and Industry Minister Piyush Goyal said the government is analysing the implications of the tariffs and consulting with exporters and industry stakeholders.

“We will take all necessary steps to secure and advance our national interest,” Goyal said, noting India’s transformation from a member of the “fragile five” to one of the world’s fastest growing major economies.

Opposition leader Jairam Ramesh dismissed the government’s position as a “non-statement” and criticised Prime Minister Narendra Modi for relying on “personal friendship” with Trump. However, broader Opposition efforts focused on the Election Commission’s actions in Bihar, with no major disruption over the tariff issue in Parliament on Thursday.

Trade deal tensions, BRICS membership add to friction

US Treasury Secretary Scott Bessent expressed frustration over India’s stance in the trade talks and said the future of the deal now depends on India. The US has pressed for greater market access in India’s dairy and agriculture sectors—longstanding stress points in bilateral trade negotiations.

Meanwhile, Trump partially blamed India’s BRICS membership for the new tariffs. Speaking to reporters, he called BRICS “a group of countries that are anti the United States” and said: “It is an attack on the dollar and we are not going to let anybody attack the dollar. So it's partially BRICS and partially trade.”

Trump also accused India of maintaining some of the highest tariffs globally, though he hinted the new duties could be delayed depending on the progress of talks.

India stands by offer; peeved over Pakistan oil remarks

Indian officials said their side had made its final trade offer earlier this month and that the onus is now on Trump to respond.

New Delhi was also irked by Trump’s overtures to Pakistan. While unveiling a new trade deal with Islamabad, he touted US plans to help develop Pakistan’s “massive oil reserves” and joked that Pakistan could one day sell oil to India.

Former foreign secretary Nirupama Menon Rao responded: “We are a sovereign democracy with a global outlook, not a convenient scapegoat. If partnership is the goal, as it is, then respect can be the only foundation.”