New Delhi | July 7, 2025 — A day after U.S. President Donald Trump imposed sweeping additional tariffs on Indian exports, Prime Minister Narendra Modi delivered a resolute and pointed response, declaring that India would never compromise on the interests of its farmers, livestock rearers, and fishermen, even at a personal political cost.
Addressing the growing trade rift between the two nations, PM Modi said, “India will never compromise on the interests of its farmers, livestock rearers, and fishermen brothers and sisters. I know personally that I will have to pay a heavy price for this, but I am prepared for it. India stands firmly with its farmers, and I am ready to face whatever it takes for their welfare.”
The Prime Minister’s remarks were widely seen as a direct message to Washington, as bilateral tensions rise over India’s continued imports of Russian crude oil—an issue that the United States claims undermines its sanctions regime and trade objectives.
India Labels Tariffs “Unfair, Unjustified, Unreasonable”
In a strongly worded statement, the Ministry of External Affairs (MEA) condemned the U.S. tariff hike as “unfair, unjustified, and unreasonable,” calling the decision discriminatory and politically motivated.
“The United States has recently targeted India’s oil imports from Russia, despite India’s consistent and transparent articulation of its energy security needs,” the MEA said, underscoring that India’s energy decisions are guided by market dynamics and the responsibility to serve 1.4 billion citizens.
Labeling the move “deeply regrettable,” the MEA also highlighted that several other countries continue to import Russian oil without facing similar punitive measures, making the U.S. action selective and inequitable. The ministry reaffirmed that India will take “all necessary steps to safeguard its national interests.”
Agriculture: The Longstanding Fault Line in India–U.S. Trade
While the Russia-oil issue has intensified current tensions, agriculture remains a long-standing and deeply sensitive point of divergence in India–U.S. trade relations.
Washington has repeatedly demanded greater access to the Indian market for U.S. agricultural and dairy products, but India has held firm, citing the need to protect its vast rural economy, which relies on minimum support price (MSP) mechanisms, food subsidies, and employment through smallholder farming.
Concerns over genetically modified crops, sanitary and phytosanitary barriers, and the potential impact on millions of livelihoods have further complicated talks.
“Farmers’ interests are paramount, and India won’t come under any pressure,” a senior government source stated. “The government is clear in its position—agricultural sovereignty is non-negotiable.”
Looking Ahead
The escalating rhetoric and retaliatory tone from both sides have cast a shadow over the already-stalled India–U.S. trade dialogue, with observers warning that strategic cooperation could suffer if economic grievances deepen.
Nevertheless, India has signaled that it is open to dialogue, but not under duress. As Prime Minister Modi’s comments reflect, New Delhi appears willing to absorb diplomatic fallout in order to safeguard the economic backbone of its rural population.
With both countries entering critical phases in their domestic political calendars, a course correction in the trade relationship may now depend on high-level diplomatic engagement—or strategic patience.
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