Prime Minister Narendra Modi issued a strong rebuke to US President Donald Trump’s imposition of a 50% tariff on Indian goods, emphasizing that India will prioritize its farmers, fishermen, and dairy sector, even at a significant cost. Speaking at the MS Swaminathan Centenary International Conference, Modi asserted, “The interests of our farmers are paramount. India will not compromise on the welfare of its farmers, fishermen, and dairy farmers, no matter the price.” He added, “I am personally ready to pay a heavy price, and India is prepared for it.”
The remarks came in response to Trump’s decision to double tariffs on Indian imports from 25% to 50%, citing India’s continued purchase of Russian oil as a violation of US sanctions. The additional 25% tariff, announced on Wednesday, brings the total duty to one of the highest imposed by the US on any trading partner, effective in 21 days.
Modi’s defiant stance follows Trump’s warning of a “penalty” for India’s trade and defense ties with Russia, which he claims fuel Moscow’s actions in Ukraine. The US has also threatened “secondary sanctions” on countries engaging with Russia, escalating tensions in India-US relations.
India’s Ministry of External Affairs condemned the tariffs as “unfair, unjustified, and unreasonable,” pointing out that the US itself imports Russian uranium, palladium, and fertilizers. The ministry highlighted that India’s oil purchases from Russia, which account for 35% of its crude imports, were initially encouraged by the US to stabilize global energy markets.
The tariff hike, effective from August 7 with the second phase set for August 28, stems from stalled trade negotiations, particularly India’s refusal to open its agricultural and digital markets. This has strained what was previously a strengthening strategic partnership between New Delhi and Washington.
Indian exporters, especially in textiles, pharmaceuticals, and processed foods, face significant challenges, with estimates suggesting a 40-50% drop in US-bound exports. The Federation of Indian Export Organisations called the tariffs “extremely shocking,” warning of disruptions to supply chains and job losses.
Analysts predict a 60-basis-point hit to India’s GDP growth due to the tariffs, while the government explores ways to bolster domestic industries under Modi’s “Make in India” initiative to counter the economic impact.
