Modi slams Trump’s tariff hike, vows to protect Indian farmers

Indian Prime Minister Narendra Modi on Thursday issued a strong response to U.S. President Donald Trump’s decision to impose up to 50% tariffs on Indian goods, declaring that India will not compromise on the interests of its farmers, even if it comes at a “high price.”

Speaking at an event in New Delhi, Modi said, “For us, the welfare of our farmers is the highest priority. India will never compromise on the welfare of its farmers, dairy sector, or fishermen. I know I may have to pay a heavy price for this.”

The statement comes shortly after President Trump announced an additional 25% tariff on Indian imports, which, when added to the existing 25%, brings the total to 50%—the highest tariff rate ever imposed by the U.S. on any trading partner. The Trump administration has stated that the new tariff, effective from August 28, is a punitive measure against India’s continued oil imports from Russia.

India’s Ministry of External Affairs has condemned the move as “extremely unfortunate” and asserted that “India will take all necessary steps to safeguard its national interests.”

The sharp escalation in tariffs marks a significant downturn in Indo-U.S. trade relations. Five rounds of bilateral trade talks have collapsed, primarily over disagreements on opening India's agricultural and dairy sectors and New Delhi's refusal to halt Russian oil imports. Although Modi refrained from directly criticizing the U.S. or the failed talks, his remarks were widely seen as a message of defiance.

Despite similar oil trade with Russia, China—currently the largest buyer of Russian crude—has not faced comparable tariffs. Experts suggest that Washington’s strategic reliance on China for rare earth minerals has led to Beijing being spared, a geopolitical advantage India currently lacks.

Commenting on the situation, Dammu Ravi, Secretary of Economic Relations in India’s Ministry of External Affairs, said, “There is no logic behind this tariff increase by the United States. It’s a temporary issue, and we believe the world will find a solution. Like-minded nations will seek mutually beneficial economic partnerships.”

The tariff standoff has triggered one of the most serious diplomatic rifts between the two nations in recent years. In response, India is reportedly exploring alternative strategic alignments to reduce its dependency on the United States.

In a significant move, Prime Minister Modi is expected to visit China next month—the first such visit in seven years—signaling a possible recalibration of India's foreign policy and alliances.

Meanwhile, Brazilian President Luiz Inácio Lula da Silva has announced plans to initiate a BRICS-level discussion on countering Trump’s tariff measures. Lula said he would speak with Modi and later engage with Chinese President Xi Jinping and other BRICS leaders to coordinate a collective response.