Prime Minister Narendra Modi responded firmly to US President Donald Trump's imposition of a steep 50% tariff on Indian goods by asserting that India will never compromise on the interests of its farmers, fishermen, and dairy farmers. Modi acknowledged that India might have to pay a heavy price for this stance but emphasized readiness to bear the cost to protect these sectors.
This tariff increase, effective August 28, 2025, was announced by Trump as a penalty for India's continued import of Russian crude oil despite US objections. The total tariff rose from 25% to 50%, the highest the US has imposed on any country, aimed to pressure India on its energy imports and trade policies.
Modi's address at the MS Swaminathan Centenary International Conference conveyed a strong message that India's agricultural and allied sectors’ welfare is paramount, and the government would prioritize these over external pressures. The Indian government criticized the US move as "unfair, unjustified and unreasonable" and vowed to take all necessary steps to protect national interests. New Delhi also highlighted the inconsistency in the US stance since it continues to import Russian materials like uranium and fertilizers.
The tariff escalation has strained US-India trade relations and complicated stalled trade talks, particularly over market access and India's refusal to curb Russian oil imports. Some Indian leaders and opposition parties called for a tougher response to uphold national dignity, while critics called the tariff issue a diplomatic challenge for Modi's government.
In sum, Modi's response to Trump's tariffs is a firm declaration prioritizing India's farmers and national interests despite economic costs, signaling readiness for a prolonged trade dispute.