In a firm and emotionally charged statement, Prime Minister Narendra Modi declared that India is ready to pay a “heavy price” to safeguard the interests of its farmers, after the United States imposed an additional 25% tariff on Indian exports. This sudden hike has escalated tensions in the already fragile trade relations between the two countries.
“Farmers Are Our Top Priority,” Says PM Modi
Speaking at the MS Swaminathan Centenary International Conference on August 7, PM Modi emphasized that India will never compromise on the welfare of its farmers, fishermen, and dairy producers.
“For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen, and dairy farmers. I know we will have to pay a heavy price for it and I am ready for it. India is ready for it,” he said.
This powerful statement came just hours after the US raised tariffs by 25%, bringing the total tariff rate on some Indian goods to a massive 50%—among the highest levied on any of its trading partners.
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Trump’s Tariff Action Targets Russian Oil Imports
On Wednesday, the US government announced an additional 25% tariff on India over its continued import of Russian oil, despite warnings from Washington. This tariff will come into effect 21 days after August 7, significantly raising the cost of Indian goods entering the American market.
The move follows former US President Donald Trump’s warning last week, where he threatened India with penalties for purchasing Russian oil and arms, going as far as to refer to India and Russia as “dead economies.”
India Refuses to Remove Duties on Farm & Dairy Products
According to reports, the Modi government had been involved in tariff negotiations with the US, offering to reduce duties on industrial goods, increase defence and energy imports, and cut back taxes on vehicles. However, India stood firm on not removing duties on agricultural and dairy products.
This refusal appears to be one of the key reasons behind the US decision to escalate the tariff war.
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