New Delhi – In a bold stance amidst rising trade tensions, Indian Prime Minister Narendra Modi declared his unwavering support for India’s agricultural sector, even at the cost of diplomatic fallout with the United States. This statement follows U.S. President Donald Trump’s decision to impose an additional 25% tariff on Indian exports, pushing the total duty to a staggering 50%.
India Refuses to Bow Under Tariff Pressure
Speaking at an event in New Delhi, Modi addressed the situation indirectly, emphasizing his government’s commitment to protecting the livelihoods of farmers, dairy producers, and fishermen.
“For us, our farmers’ welfare is supreme. India will never compromise on the well-being of its farmers, dairy sector and fishermen. And I know personally I will have to pay a heavy price for it,” Modi stated.
The increased tariffs, effective from August 28, have been widely interpreted as a punitive measure in response to India’s continued purchase of Russian oil—an issue that has become a sticking point in diplomatic talks.
Breakdown of India-US Trade Talks
Trade negotiations between the two nations had gone through five rounds before collapsing due to disagreements over opening India’s agricultural markets and its energy ties with Russia. Modi refrained from naming the United States directly in his remarks, but the timing and tone of his speech made the message clear.
India’s Ministry of External Affairs called the U.S. decision “extremely unfortunate” and reaffirmed that New Delhi would take “all necessary steps to protect national interests.”
Uneven Treatment? India vs. China
Experts have criticized the U.S. administration for what they perceive as selective enforcement of trade penalties. Despite being the largest importer of Russian oil, China has not faced similar tariff increases from Washington.
Analysts suggest that China’s vast reserves of rare earth minerals and other critical commodities give it a stronger bargaining position, unlike India, which remains more dependent on global trade routes.
“The US tariff hike lacks logic,” said Dammu Ravi, Secretary of Economic Relations at India’s Ministry of External Affairs. “This is a temporary problem… but we are confident the world will find balanced solutions.”
India Signals Strategic Pivot
As relations with the U.S. strain, India is quietly exploring new partnerships. PM Modi is reportedly planning a state visit to China, marking his first in over seven years — a possible signal of shifting alliances amid growing interest in BRICS cooperation.
Meanwhile, Brazilian President Luiz Inacio Lula da Silva has announced plans to initiate talks within BRICS to respond collectively to the tariffs. He intends to connect with leaders of India, China, Russia, and South Africa to forge a path forward for emerging economies.
“Like-minded countries will look for cooperation and economic engagement that will be mutually beneficial to all sides,” Ravi emphasized.
What’s Next for India-US Trade Relations?
While the tariffs have sparked the worst diplomatic standoff between India and the U.S. in years, it remains to be seen how far the economic fallout will go. India’s stance underscores its broader goal of maintaining strategic autonomy while defending the core interests of its agricultural sector.
As the global trade landscape shifts, India appears poised to strengthen ties with fellow developing nations and reduce reliance on the West.
