India is not too worried about US President Donald Trump’s 25% tariff announcement and does not plan to retaliate, government sources told Business Today TV on Thursday. “India is not going to retaliate on this. Silence is the answer,” a source said. “Whatever we do, we will do on the negotiation table.”

The response from New Delhi comes after Trump announced a 25% tariff on all goods imported from India, effective August 1, along with an unspecified penalty linked to India’s trade with Russia. Despite the escalation, Indian officials indicated a measured approach. 

They drew a historical perspective to underline confidence in India’s current global position. “When we did nuclear testing, so many sanctions were put on us. Then, we were a small economy. Today, we are such a self-sufficient economic power, why should we worry now?”

Union Minister of Commerce and Industry Piyush Goyal also confirmed that the government is evaluating the situation and engaging stakeholders. “The Ministry of Commerce and Industry is holding talks with exporters, industries, and all stakeholders and gathering information on their assessment of this issue,” he said while speaking in the Lok Sabha.

“Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs, and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” Goyal added. 

Trump, in his remarks earlier this week, sharply criticised India’s trade posture and ties with Russia: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” he said. “We have done very little business with India, their tariffs are too high, among the highest in the world.”

The announcement was particularly striking as it came just one day after Indian officials had confirmed that a US trade team would be arriving in New Delhi from August 25 to negotiate a broader trade deal. Trump’s statements have been viewed in diplomatic circles as a tactic to pressure India into making concessions, similar to deals the US recently secured with Japan, the UK, and the European Union.

Trump also attacked India’s membership in BRICS and suggested the bloc is aligned against the US:
“BRICS… is an attack on the dollar and we are not going to let anybody attack the dollar,” he said, adding that India’s import of Russian crude oil and defence equipment was unacceptable.

India, however, is expected to stick to a cautious and calibrated line. It has emerged as the second-largest buyer of Russian oil after China, with Russian crude now accounting for nearly 35-40% of its import basket, up from just 0.2% before the Ukraine war.