Speaking at the MS Swaminathan Centenary International Conference in New Delhi on Thursday, Prime Minister Narendra Modi declared that India will prioritise its national interests and will not compromise on protecting its farmers, fishermen, and the dairy sector. His remarks were widely interpreted as a direct response to the recent actions by US President Donald Trump, who imposed a 50 per cent tariff on Indian goods.
In his speech, Modi stated, "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."
The Prime Minister's defiant tone followed closely on the heels of Trump's executive order, which levied an additional 25 per cent tariff on select Indian exports. This new tariff, which is on top of the 25 per cent already in place, raises the total duty to 50 per cent, making it one of the highest tariffs the US has ever placed on a nation.
Most people believe that this action is a form of retaliation against India for defying US policy by refusing to buy Russian military hardware and oil. What had been a growing strategic partnership in recent years has been strained by the ongoing conflict surrounding India's trade with Russia.
Just days ago, Trump threatened to impose a 'penalty' on India for its ties to Moscow while referring to it as a 'friend.' He delivered on Wednesday. Additionally, the US president has threatened 'secondary sanctions' in the days ahead.
Also Read: Trump imposes 50 pc tariffs on India
The Centre responded angrily, declaring that the tariffs were 'unfair, unjustified, and unreasonable' and promising to 'take all actions necessary to protect its national interests.' It also criticised Washington for its hypocritical treatment of Russian oil imports while continuing to purchase Russian fertiliser, palladium, and uranium hexafluoride.
The tariff increase also reflects Washington's mounting annoyance over the deadlocked bilateral trade deal talks that ended when New Delhi refused to compromise on digital trade regulations and access to agricultural markets.
US-Indian relations are at their lowest level in years as a result of Trump's tariff offensive. Exporters and business executives on both sides have expressed concern about it as well. Analysts caution that the tariffs may harm important Indian industries that contribute significantly to the country's exports, such as processed foods, textiles, and pharmaceuticals.
The first 25 per cent duty went into effect today, August 7, and unless there is an agreement between the two parties, the second round will take effect in 21 days.
Also Read: Trump warns India of secondary sanctions after 50% tariff hike
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