India on Trump’s 50% Tariff: No Compromise on Farmers, Slams Tariff Hike as “Unjustifie

In a dramatic escalation of trade tensions between two of the world’s largest democracies, Prime Minister Narendra Modi has drawn a clear line in the sand: India will not bend under international pressure if it comes at the cost of its farmers, fishermen, and livestock rearers.

Responding to US President Donald Trump’s sudden executive order to impose a steep 50% tariff on Indian goods, Modi addressed a global audience at the MS Swaminathan Centenary International Conference on Thursday. His words were as bold as they were personal.

“India will never compromise on the interests of its farmers... I know that I will have to pay a heavy personal price for this. But I am ready for it.”

This statement marks not just a policy response—but a political and emotional declaration—underscoring the depth of India’s commitment to its agricultural economy, which directly supports more than 700 million people across the country.

What Sparked This Diplomatic Firestorm?

On Wednesday, US President Donald Trump signed an executive order that doubles tariffs on Indian imports from 25% to 50%, citing India’s continued oil trade with Russia as a violation of international sanctions and a threat to American national interests.

The move, part of a broader trade shakeup titled “Further Modifying the Reciprocal Tariff Rates,” places India among the countries facing the harshest new tariffs—alongside Brazil and a few others.

The order, which came into effect on August 7, includes a second hike scheduled for August 27, raising the total duty to 50%. In a social media post shortly after midnight, Trump wrote:

“Reciprocal tariffs take effect at midnight tonight! Billions of dollars… will start flowing into the USA.”

But that wasn’t all. Trump warned of secondary sanctions in the pipeline—signaling that more economic pressure on India may be coming.

India: “This Is Unfair, Unjustified, and Unreasonable”

India was swift and sharp in its response. The Ministry of External Affairs issued a statement slamming the US action:

“The United States has targeted India’s oil imports from Russia despite being aware that our decisions are guided by market dynamics and national energy security. India imports energy to meet the needs of 1.4 billion people.”

The Indian government also highlighted the selective and discriminatory nature of the tariffs, pointing out that European countries continue to import Russian oil at higher volumes, yet face no such penalties.

Behind the Tariffs: A Tug-of-War Over Agriculture

The tariff standoff isn’t just about oil. It casts a long shadow on the India-US Bilateral Trade Agreement, which has made little progress since negotiations began earlier this year.

The sticking point? Agriculture—a sensitive but crucial sector for India. The US has been pushing for greater market access for its subsidized farm produce, including dairy and genetically modified (GM) food. India, in contrast, has maintained protective tariffs to safeguard its millions of small and marginal farmers.

“More than 700 million Indians are directly or indirectly connected to the agriculture sector,” said a senior Indian official.
“Liberalizing agri-imports without adequate safeguards could severely disrupt rural livelihoods.”

Modi echoed this concern at the Swaminathan Conference, saying:

“We are consistently working to increase farmers’ incomes, reduce the cost of cultivation, and create new sources of earnings… Our policies are not just about assistance, but about building confidence in those who feed the nation.”

It’s Not Just India: Global Trade on the Boil

India is not alone in feeling the heat from Washington. Trump’s latest tariff order raised duties on goods from several other countries:

• Laos & Myanmar: 40%

• Pakistan: 19%

• Sri Lanka: 20%

• United Kingdom: 10%

• Japan & South Korea: 15%

While Japan and South Korea accepted the new terms to avoid harsher penalties, India stood its ground and refused to concede to what it calls “arm-twisting tactics.”

The executive order bluntly stated: “Some countries have chosen to align with the United States. Others, like India, have failed to take adequate steps.”

Trade experts warn that this could just be the beginning of a longer and more complicated economic tug-of-war between New Delhi and Washington. The second tranche of tariffs is already locked in. And with Trump hinting at more secondary sanctions, the coming weeks are expected to be turbulent.

Yet, amidst the uncertainty, India’s stance is clear: Sovereignty over submission. Farmers over free trade.

Why This Matters for India—and Its Future

This standoff goes beyond tariffs. It’s about India asserting its autonomy in an increasingly polarized world.

• India's refusal to bow down sends a signal to global powers that national interest comes first.

• The government’s firm stance protects a sector that sustains over half the country’s population.

• For Indian startups and businesses, especially those in agri-tech, energy, and sustainability, this may open up a new phase of policy-driven domestic innovation.

As the world watches this India-US showdown unfold, one message rings loud and clear: India is ready to pay the price to protect its people—and its principles.