New Delhi, August 7, 2025 –
Prime Minister Narendra Modi has issued a firm and indirect response to U.S. President Donald Trump’s recent decision to impose steep tariffs on Indian goods. Emphasizing national interest, Modi stated that there is “no question of compromising” when it comes to the welfare of Indian farmers.
This reaction follows the U.S. government’s controversial move to increase tariffs on several Indian imports, particularly in response to India’s consistent refusal to allow American dairy products into the Indian market.
India Refused to Bow to Pressure on Dairy Imports
The trade tensions between the two countries are not new. India has repeatedly declined to import U.S. dairy products, citing health, cultural, and agricultural concerns. The Modi-led government has always maintained that protecting domestic dairy farmers is a top priority.
In retaliation, President Trump recently imposed a 50% tariff hike on Indian exports, a move that has drawn criticism from economic analysts and political observers alike. The tariffs, according to the White House, are also linked to India’s increased oil imports from Russia—something Trump has openly objected to.
Modi’s Message: India Will Not Compromise Farmers’ Interests
Speaking at an agricultural development event, PM Modi refrained from naming the U.S. directly but made his stance clear. “On matters concerning farmers, their livelihood, and their future, there is no question of compromise,” he said, drawing applause from the audience.
His remarks are being seen as a direct counter to U.S. pressure tactics and a declaration that India’s trade policies will prioritize local interests over external demands.
Tariff War May Impact Bilateral Trade
Trade experts warn that the escalating tariff battle could hurt both economies. While the U.S. is a major market for Indian goods, India is also a key trading partner for American companies, especially in the pharmaceutical, tech, and IT sectors.
Despite the tensions, both sides have maintained diplomatic channels open, and official talks are expected in the coming weeks to address tariff concerns and trade imbalances.
Background: The Tariff Trigger
The current tariff hike by the U.S. was justified by Trump’s administration as a reaction to India’s increased crude oil purchases from Russia. Washington sees this as undermining U.S.-led sanctions and energy strategies, although India has maintained that its purchases are based on strategic and economic needs.
Conclusion
Prime Minister Modi’s bold stance underscores India’s commitment to sovereign trade policies that prioritize domestic well-being over foreign pressure. Whether this leads to further tension or opens doors for negotiation remains to be seen.