India Ready to Weather Tariff Storm

New Delhi may not retaliate against US' 25% levy and Russia penalty

- ARCHIS MOHAN

A day after US President Donald Trump announced a 25 percent tariff, plus a penalty for oil and defence buys from Russia, on Indian exports from August 1, top government functionaries brainstormed on the way ahead. The broad consensus was to weather the storm while persisting with New Delhi's multi-track engagement with the White House.

Top government sources conceded they were surprised at Trump's Wednesday evening (India time) announcement, especially since negotiations for a bilateral trade pact were still underway and a US team is scheduled to land in New Delhi on August 25 for the sixth round of talks. However, they ruled out the prospect of any retaliatory action being initiated by New Delhi, and asserted that India would neither succumb to the Americans on issues of national security, such as its defence ties with Russia, nor cede ground on its domestic interests in the agriculture and dairy sectors.

The US insistence to secure greater market access in agriculture and dairy sectors has been a stress point in trade negotiations. US Treasury Secretary Scott Bessent said in a CNBC interview on Thursday that the US trade team was frustrated with India, adding that the future of the trade deal between the two nations was now up to India.

In a statement in both Houses of Parliament on Thursday evening, Commerce and Industry Minister Piyush Goyal said the government will take all necessary steps to safeguard and promote national interest.

"Let us wait and watch how the situation evolves. The ball is in the US court," said a government source, adding that the government awaited clarity and the US executive order on the structure of the 25 per cent tariff and the quantum of penalty.