Prime Minister Narendra Modi on Thursday asserted that India will “never compromise on the interests of farmers, fishermen, and dairy producers,” following US President Donald Trump’s decision to impose an additional 25% tariff on Indian goods.
PM Modi says, “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 personally, I will have to pay a heavy price for it, but I am ready for it. Today, India is ready for the country’s farmers, fishermen and dairy farmers…”
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PM Modi made his remarks during the M. S. Swaminathan Centenary International Conference in New Delhi.
Trump puts additional 25 % tariffs
In a major blow to India’s trade interests, President Trump on Wednesday announced an additional 25% tariff on Indian goods, effective August 27. This comes on top of a similar 25% tariff declared last week, further escalating trade tensions between the two countries.
During last week’s announcement, Trump had also warned of possible penalties against India over its continued purchases of Russian energy and defence equipment.
India has strongly condemned the move, calling it “unjustified and unreasonable,” and has accused both the United States and the European Union of selectively targeting New Delhi for maintaining trade relations with Russia.
Trade deals often push for market access, meaning India might have to lower tariffs on US agricultural products like wheat, dairy, poultry, or corn. This could flood the Indian market with cheaper, subsidised US goods, undercutting local farmers who don’t get the same level of state support.
As per reports, India has resisted US demands to open its agriculture and dairy markets, arguing that such measures would negatively impact millions of small and marginal farmers. This ongoing disagreement has been cited as a key factor stalling progress on a US-India trade deal