Key Points

"It is a sad day for Indian exports because India is doing exports worth over 100 billion dollars and our surplus is over $40 billion. It will slow down some of our exports and there will be a ripple effect on our manufacturing, particularly in carpet, pharmaceuticals and handicrafts sectors..." Goyal told ANI.

He further stated that the imposition of the tariffs would also adversely affect the American consumers.

"But it will also adversely affect the American consumers. We are seeing that many American airports are devoid of tourists... Disneyland has already started seeing a less number of visitors. India will also have to diversify its export markets because we depend a lot on the US markets, India will have to relook at certain Asian and European markets..." he added.

Earlier in the day, US President Donald Trump announced that a 25 per cent tariff and an additional penalty would be imposed on Indian imports, starting August 1, citing high Indian tariffs and the country's trade relationship with Russia.

"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said in a post on Truth Social.

"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!", he added.

Meanwhile, Bharatiya Janata Party (BJP) MP Pratap Chandra defended Prime Minister Narendra Modi's leadership, stating that there was no reason for "huge market" India to be afraid of tariffs imposed by the US.

"There is no reason to be afraid. India is a huge market, whose export has expanded exponentially, which will have a reciprocal effect... Under the guidance of PM Modi, we will face this with our tactics," Sarangi told ANI.

- ANI