'India will never compromise..': Modi reacts to Trump's 50% tariffs
What's the story
Prime Minister Narendra Modi has made it clear that India will not compromise on the interests of its farmers, livestock holders, and fishermen. This statement comes after United States President Donald Trump imposed an additional 25% tariff on Indian exports, taking the overall tariff to 50%. Speaking at the MS Swaminathan Centenary International Conference in Delhi, PM Modi said he was willing to "pay a huge price" personally for this stand.
Tariff response
India ready for it: PM
"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...India is ready for it," Modi said. At the event, he also paid his respects to Swaminathan, the architect of the Green Revolution, saying, "Building on the legacy of food security, the next frontier for our agricultural scientists is ensuring nutritional security for all."
MEA statement
MEA calls Trump's tariff increases 'unfair, unjustified, and unreasonable'
In response to the increased tariffs, India's Ministry of External Affairs (MEA) late Wednesday night said that targeting India over Russian oil imports is "unfair, unjustified, and unreasonable." The MEA emphasized that India's imports are based on market factors and aimed at ensuring energy security for its population of 1.4 billion people. The ministry also stressed that India would take necessary actions to protect its national interests.
Deal
India-US Bilateral Trade Agreement
At the center of the ongoing trade row is the proposed India-US Bilateral Trade Agreement (BTA), which has made little headway since negotiations started in March 2025. One of the major sticking points is India's refusal to grant duty cuts on agricultural items, dairy, and genetically modified (GM) food products, which the US has prioritized in its negotiations.
Agri
700 million people connected to the farm sector
Over 700 million people in India are involved in the farm sector, and Indian officials say that tariff protections are required to minimize market disruptions caused by subsidized US agri-exports, particularly during periods of global price volatility. In contrast to the United States, where agriculture is heavily corporatized, India sees farming as a source of income for farmers. Officials warn that removing tariffs will expose Indian farmers to unfair competition and undermine food security.
Relations
Relation strained by many factors
Amid the ongoing trade talks, Trump threatened to impose tariffs on India for continuing to purchase oil and military equipment from Russia, which he did impose: first on July 30 (25%) and on Wednesday (another 25%). India and the US have held five rounds of trade talks before Wednesday. Relations have been further strained by Trump's claim that he mediated a peace deal between India and Pakistan following an armed confrontation in May, but Modi has denied any foreign involvement.