In a defiant response to U.S. President Donald Trump’s decision to impose an additional 25% tariff on Indian exports, Prime Minister Narendra Modi on Thursday declared that India will not compromise the interests of its farmers, even if it means bearing economic consequences.
“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 we will have to pay a heavy price for it, and I am ready for it. India is ready for it,” PM Modi said in a strong message.
Whatever it takes, India will not compromise on the interests of its farmers, livestock keepers and fishermen. pic.twitter.com/pvqIKipsCO
— Narendra Modi (@narendramodi) August 7, 2025
The statement comes a day after President Trump signed an Executive Order doubling the tariff on Indian goods to 50%, citing national security and foreign policy concerns linked to India’s continued imports of Russian oil. The White House document claimed such imports pose an “unusual and extraordinary threat” to the United States.
The revised tariff regime will come into effect in two phases — the original 25% duty starts from August 7, while the additional 25% hike will be implemented 21 days later. Exemptions will apply to goods already in transit or covered under Annex II of Executive Order 14257, which excludes certain minerals, industrial chemicals, fuels, and pharmaceutical precursors.
The U.S. has been pushing India to open its agricultural market, especially for corn, soybeans, and cotton. However, India has resisted, citing potential harm to domestic farmers and dairy producers.
Economists are now recalibrating their forecasts. Sonal Badhan, Economics Specialist at Bank of Baroda, noted that the new tariff hike could shave 0.2–0.4% off India’s GDP growth in FY26. Sectors expected to bear the brunt include garments, electronics, auto parts, pharmaceuticals, MSMEs, and precious stones.
The Executive Order allows for future modifications based on negotiations or geopolitical developments, keeping the door open for potential tariff reversals.
Let me know if you’d like an image, quote graphic, or carousel version for Instagram or LinkedIn.
