Donald Trump 25% tariff, ‘dead economy’ jibe: India sends clear message to the US in 5 points – what Piyush Goyal said

When U.S. President Donald Trump announced a 25% tariff on Indian exports—coupled with a scathing description of India as a “dead economy,” Commerce Minister Piyush Goyal responded emphatically with a five-point message that redefined India’s stance.

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1. Rejection of the “dead economy” label

Goyal categorically rejected Trump’s derogatory term, stating that India is currently the fastest‑growing major economy and is expected to become the third‑largest economy in the world in a few years.

2. Strategic inclusivity, not coercion

He emphasized that India will not bow to economic intimidation or unjust pressure, reaffirming that any future deals with the U.S. must be fair, balanced, and mutually beneficial, without compromising national interests.

3. Safeguarding stakeholders

Goyal pledged that the government will take all necessary steps to protect the interests of farmers, MSMEs, exporters, laborers, and entrepreneurs, by actively consulting stakeholders and assessing impacts of the tariff decision.

4. Trade talks on progress

India and the U.S. initiated bilateral trade negotiations in March 2025, aiming to finalize the first phase by October–November 2025. Multiple physical and virtual meetings have already taken place in both capitals.

5. Confident economic trajectory

Highlighting India’s transformation over the past decade, Goyal noted it has moved from 11th‑largest economy to 5th‑largest globally, fuelled by reforms and the drive of Indian entrepreneurs and MSMEs.

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Context & Outlook

On July 30–31, Donald Trump labelled India a “dead economy.” He also suggested that India shared a similar decline with Russia. Earlier, he had shown optimism about a possible trade deal.

However, starting August 1, 2025, Trump imposed a 25% tariff on Indian exports. He cited high Indian tariffs and ongoing trade tensions over Russian energy and defence ties as key reasons.

In response, India—through Piyush Goyal—sent a clear message. The government stated it would not bow to pressure. Instead, it would pursue fair negotiations on its own terms.

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In essence, Piyush Goyal’s five-point rebuttal delivered a bold and authoritative message: India refuses to be defined or bullied. While the U.S. pursued aggressive trade tactics, India reaffirmed its economic ascent and commitment to sovereign, fair-deal diplomacy.

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