On August 29, 2025, India’s Commerce and Industry Minister Piyush Goyal declared that India will not “bow down” to U.S. pressure following the imposition of 50% tariffs on Indian goods. Speaking at a construction industry event in New Delhi, Goyal emphasized India’s resolve to counter the economic blow by capturing new global markets.

The tariffs, effective from August 27, target India’s $87.3 billion export market to the U.S., its largest trade partner in 2024, as a punitive measure for India’s continued purchase of Russian oil amid the Ukraine conflict. Despite the strain on U.S.-India ties, Goyal’s defiant stance signals a strategic pivot to diversify trade and protect national interests.

The U.S. tariffs, initiated by the Trump administration, threaten labor-intensive sectors like textiles, seafood, and jewelry, with exporters already reporting canceled orders and losses to competitors like Bangladesh and Vietnam. However, Goyal remains optimistic, asserting that India’s exports will surpass last year’s figures. He announced that the government will soon roll out measures to support affected industries, including small and medium enterprises. Additionally, India remains open to free trade agreements (FTAs) but will not compromise its dignity. “We will neither bow down nor appear weak,” Goyal said, highlighting the confidence of India’s 1.4 billion citizens.

India’s purchase of Russian oil, which meets 35% of its energy needs, has drawn criticism from Washington yet Goyal defended India’s trade choices, noting that other nations, including the U.S., continue to import Russian resources without similar penalties. The Indian Ministry of External Affairs has called the tariffs “unfair, unjustified, and unreasonable,” pointing out inconsistencies in U.S. policy.