India asserts a strong diplomatic stance after the U.S. raises import duties to 50%, with PM Modi declaring no compromise on farmers’ interests despite expected export setbacks.
New Delhi | August 7, 2025: In a significant escalation of trade tensions, U.S. President Donald Trump has imposed an additional 25 percent import duty on Indian goods, raising the total tariff burden to 50 percent. The decision, prompted by India’s continued oil trade with Russia, has drawn a sharp response from Prime Minister Narendra Modi.
Addressing the ‘M.S. Swaminathan Centenary International Conference’, Prime Minister Modi made India’s position clear. “The interests of our farmers are our top priority. India will never compromise with the interests of our farmers, animal husbandry and fishermen,” he said. Modi further noted, “I am aware that this stance will cost me personally, but I am prepared for it.”
India’s message to the U.S. is unambiguous: trade decisions will be guided by national interest, especially where agriculture and rural livelihoods are concerned. Industry experts, however, warn of a major blow to India’s export sector. Sectors such as textiles, leather, electronics, and auto components are likely to suffer as higher U.S. tariffs make Indian products nearly 50 percent costlier, potentially slashing exports by up to half.
Despite the economic risks, the Indian government’s tone remains firm. The response signals a growing resistance to foreign pressure, underlining that India’s internal economic priorities will not be dictated by external influence.
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