PM Modi’s Response to U.S. Tariffs: Calm, Confident, and Focused on National Interest

When confronted with external pressures, Prime Minister Narendra Modi has consistently emphasized placing India’s national interest above all else. That approach is once again evident as New Delhi faces steep 50% tariffs imposed by the United States under President Donald Trump—a leader once counted among Mr. Modi’s close international allies.

Speaking two days before the new tariffs took effect, the Prime Minister described the move as part of the global trend of “economic self-interest,” remarking that “everyone is busy serving their own agenda.” His response reflects a measured and pragmatic stance: rather than reacting defensively, Mr. Modi is projecting resilience and positioning India to turn the challenge into an opportunity.

The timing is significant. Later this week, the Prime Minister will meet Chinese President Xi Jinping and Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Tianjin. The trilateral engagement will be closely watched in Washington, given its potential to shape a counterbalance to U.S. influence in the longer term.

While India’s exports to the U.S. are valued at around $86 billion—just 2% of the country’s GDP—the actual impact of tariffs is narrower and less severe than headline numbers suggest. Policymakers in New Delhi remain confident that India’s robust macroeconomic fundamentals, steady growth trajectory, and the prospect of soon becoming the world’s third-largest economy provide a strong buffer against short-term disruptions.

Government sources suggest that India has overcome far greater crises in the past, and Mr. Modi’s calm, confident response is consistent with that history. His focus now is on accelerating reforms, improving the ease of doing business, and strengthening India’s domestic ecosystem. Simultaneously, New Delhi is keeping channels with Washington open while diversifying trade partnerships through free trade agreements (FTAs) and access to new markets. Following a successful FTA with the United Kingdom, negotiations with the European Union are also being prioritized.

India’s rising global competitiveness—illustrated by the export of electric vehicles to over 100 countries—underscores its resilience. Reports in a German newspaper that President Trump’s repeated attempts to reach Mr. Modi by phone went unanswered remain unconfirmed; both the Indian government and the White House have declined to comment.

There is little doubt that the tariff decision has strained India-U.S. ties. Yet officials argue that yielding to Washington’s demands, particularly those affecting farmers and small industries, would have undermined India’s long-term economic sovereignty. Instead, Mr. Modi and the leadership of the Rashtriya Swayamsevak Sangh (RSS), including chief Mohan Bhagwat, have reiterated the importance of atmanirbharta (self-reliance) as the cornerstone of India’s response.

Energy security and strategic autonomy, the Prime Minister has emphasized, are non-negotiable. Rather than bowing to pressure, India intends to use this moment to push through once-in-a-generation reforms and diversify its economic partnerships.

At the same time, New Delhi is unlikely to miss the opportunity to highlight what it sees as U.S. double standards—engaging both Russia and China while penalizing India for similar actions. By reinforcing its independence and resilience, India aims to send a clear message: its growth trajectory cannot be dictated or constrained by external pressures.