‘READY TO PAY HEAVY PRICE:’ INDIA’S MODI ON TRUMP TARIFFS

Thu 07 August 2025:

On Thursday, Indian Prime Minister Narendra Modi declared his readiness to pay a “heavy price,” in response to elevated US tariffs, emphasizing that he will “never compromise” on safeguarding the interests of India’s citizens.

His reaction came a day after U.S. President Donald Trump doubled US tariffs on India to 50%, up from 25%, penalising Delhi for purchasing Russian oil – a move India called “unfair” and “unjustified”. The tariffs aim to cut Russia’s oil revenues and force Putin into a ceasefire. The new rate will come into effect in 21 days, so on 27 August.

With the new order, US tariffs on Indian imports climb to 50%, half of which go into effect starting Thursday.

“The welfare of our farmers is the highest priority,” Modi told an event in the capital New Delhi, adding that “India will never compromise on the interests of its farmers, livestock rearers, and fishermen.”

“I know I will have to pay a heavy personal price for this. But I am ready for it,” Modi said.

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New Delhi called Trump’s steep new tariffs “extremely unfortunate” and his actions “unfair, unjustified and unreasonable,”

Trump accuses New Delhi of profiting from the resale of Russian oil.

While India was among the first to initiate trade discussions with the US, the two sides have not reached a deal as New Delhi pushed back on granting access to its agricultural and dairy markets.

The opposition has upped the ante with senior Congress party leader Rahul Gandhi calling Trump’s 50% tariffs “economic blackmail” and “an attempt to bully India into an unfair trade deal”.

Is Modi’s touted “mega partnership” with the US now his biggest foreign policy test? And will India hit back?

India’s former central bank governor Urjit Patel said that India’s “worst fears” have materialised with the recent announcement.

“One hopes that this is short term, and that talks around a trade deal slated to make progress this month will go ahead. Otherwise, a needless trade war, whose contours are difficult to gauge at this early juncture, will likely ensue,” Mr Patel wrote in a LinkedIn post.

“India’s efforts to reduce its dependence on Russian military hardware and diversify its oil imports predate pressure from the Trump administration, so Delhi may be able to offer some conciliatory gestures in line with its existing foreign policy behaviour,” according to Dr Chietigj Bajpaee of Chatham House.

He says the relationship is in a “managed decline”, losing Cold War-era strategic importance, but Russia will remain a key partner for India for the foreseeable future.

However, some experts believe Trump’s recent actions give India an opportunity to rethink its strategic ties.

Trade between the US and India exceeded $190 billion last year, yet the US runs a trade deficit of around $45 billion with India.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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