India will not ‘bow down’ to US after steep tariffs, trade minister says

Analysts have warned that the 50 percent duty the US has imposed on Indian goods is akin to a trade embargo.

India will not “bow down” to the United States and will instead turn its attention to attracting new markets, its trade minister has said, in his first public remarks since the US’s stiff 50 percent tariffs^[1] on Indian goods took effect.

Speaking at a construction industry event in New Delhi on Friday, Piyush Goyal said India was “always ready if anyone wants to have a free trade agreement with us”. But, he added, India “will neither bow down nor ever appear weak”.

“We will continue to move together and capture new markets.”

The remarks came as the steep tariffs on many Indian imports into the US took effect^[2] this week as punishment for New Delhi’s massive purchases of Russian oil, part of US efforts to pressure Moscow into ending its more than three-year war in Ukraine.

Since his return to the White House this year, US President Donald Trump has wielded tariffs as a wide-ranging policy tool, with the levies upending global trade.

The latest tariff salvo from Trump has strained US-India ties, with New Delhi earlier criticising the levies as “unfair, unjustified and unreasonable”.

Trade talks between the two countries have stumbled over agriculture and dairy markets.

Trump wants greater US access, while Indian Prime Minister Narendra Modi is determined to shield India’s farmers, a huge voter bloc.

The US was India’s top export destination in 2024, with shipments worth $87.3bn.

Analysts have cautioned that a 50 percent duty is akin to a trade embargo and is likely to harm smaller firms.

Exporters of textiles, seafood and jewellery have already reportedly cancelled US orders amid losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.

Goyal said on Friday the government would release several measures in the coming days to support every sector and boost exports. “I can say with confidence that India’s exports this year will exceed 2024-25 numbers.”

Meanwhile, days after the US tariffs on India went into effect, the US Court of Appeals for the Federal Circuit in Washington, DC, has largely upheld a May decision that found Trump overstepped his authority^[3] in imposing universal tariffs on all US trading partners.

Trump had invoked the International Emergency Economic Powers Act to justify the move, claiming that trade deficits with other countries constituted a “national emergency”.

But the appeals court questioned that logic in Friday’s decision, ruling overwhelmingly against the blanket tariffs.

The Trump administration is expected to appeal to the Supreme Court, and the appeals court therefore said his tariff policy could remain in place until October 14.

References

1. ^{^} 50 percent tariffs (www.aljazeera.com)
2. ^{^} took effect (www.aljazeera.com)
3. ^{^} Trump overstepped his authority (www.aljazeera.com)