Union Commerce Minister Piyush Goyal has stated that India will not “bow down” to the new 50% tariffs imposed by U.S. President Donald Trump. Instead, India will focus on capturing new global markets to boost its exports and support domestic sectors.
India’s Response to U.S. Tariffs
Speaking at an industry event in New Delhi, Goyal said, “India will neither bow down nor ever appear weak. We will continue to move together and capture new markets.” He assured that the government would announce new measures in the coming days to support various sectors and maintain export growth. Goyal confidently predicted that India’s exports would surpass last year’s figures.
The tariffs, which took effect this week, were a “punitive measure” by the U.S. in response to India’s significant purchases of discounted Russian oil. The U.S. has used tariffs as a policy tool to pressure Moscow over the war in Ukraine.
Impact on India and U.S.-India Relations
The U.S. was India’s top export destination in 2024, with shipments valued at $87.3 billion. However, analysts warn that the 50% tariff is a severe blow, potentially harming smaller firms and leading to job losses. Exporters in the textile, seafood, and jewelry sectors have already reported canceled orders, with business shifting to rivals like Bangladesh and Vietnam.
The tariffs have strained U.S.-India relations, which have been rocky over trade issues. While trade talks have stalled over disagreements on agricultural and dairy markets, Prime Minister Narendra Modi has emphasized a “swadeshi” (self-reliance) push, vowing to protect India’s farmers from external pressure.
