New delhi: India on Wednesday pledged to take 'all steps necessary' to protect its national interests following US President Donald Trump's announcement of a 25% tariff and additional penalties on Indian exports starting August 1.

According to Anadolu Agency, New Delhi is currently evaluating the implications of Trump's announcement as stated by the Commerce and Industry Ministry. The ministry highlighted that India and the US have been negotiating a fair, balanced, and mutually beneficial bilateral trade agreement over the past few months, reaffirming India's commitment to this objective.

The ministry emphasized the government's dedication to safeguarding the welfare of farmers, entrepreneurs, and MSMEs (micro, small, and medium enterprises). It assured that all necessary actions will be taken to secure national interests, similar to other trade agreements, including the recent Comprehensive Economic and Trade Agreement with the UK.

President Trump, in his announcement, accused India of unfair trade practices and criticized its energy and arms relations with Russia. He declared that India will face a 25% tariff and additional penalties starting August 1, though specifics on the penalties were not disclosed. Trump expressed discontent over India's high tariffs, stating that despite being a friend, the trade barriers have limited business opportunities.

Trade between the US and India is significant, with goods trading valued at approximately $129 billion in 2024, while the US experiences a $45.7 billion trade deficit according to the Office of the United States Trade Representative.

In India, the main opposition party, Congress, has urged Prime Minister Narendra Modi to confront the US President regarding the tariffs.