Trump's 25% tariff will immediately impact India's export-intensive sector: FICCI's Director General Jyoti Vij
'We are confident that Indian negotiators will be able to secure a meaningful and permanent agreement with the United States, without compromising on the national interests," added Vij in her statement.
Donald Trump, in a fiesty Truth Social post on Wednesday, slapped 25 per cent tariffs on all Indian goods starting August 1 citing 'obnoxious' trade barriers, and an additional 'penalty' for India's continued energy and defense ties with Russia. The POTUS also criticised India's military and oil imports from Russia, saying it has enabled Moscow to continue the war on Ukraine.
Following Trump's tariff announcement, the Central government issued a statement, stating that it has taken note of the US tariffs on India.
The Ministry of Commerce & Industry said that the government is 'studying the implications', and "will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,' the ministry stated.
Indian trade bodies expressed disappointment over Trump's decision to impose 25 per cent tariffs and additional penalties, calling it a setback for the Indian export market.
While some trade and industry leaders warned of short-term disruptions, others remained confident that India's strong manufacturing base — especially in sectors such as pharmaceuticals and medical equipment — would help it withstand the impact and forge new trade partnerships.
Dilip Kumar, Chairman of Medical Tourism, Chamber of Commerce claimed that Trump is 'trying to kill the market of the Indian economy, but it is not going to happen. The reason behind this is that we are exporters, especially of medical equipment, pharmaceuticals, and disposables, which mostly come from India,' reported ANI.
Kumar also noted that the American market relies heavily on Indian and Chinese supplies, and that the cost of treatment and medical procedures in the US is likely to rise in response to Trump's move. He added that the impact would be more severe for Americans than for India, which could redirect its exports to European markets.
According to analysts, Trump's tariffs are likely to spark a knee-jerk reaction when the Indian stock market opens for trading tomorrow, July 31, with the tariffs set to take effect from August 1.
"There could be a knee-jerk reaction in the short term, but the issue with Trump is that he often says one thing today and something completely different tomorrow. What is certain is the uncertain nature of Trump's approach," said Kranthi Bathini, Director - Equity Strategy, WealthMills Securities
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