PM Modi says ready to pay 'heavy price' to protect interests of farmers as Trump doubles tariff

PM Modi says ready to pay 'heavy price' to protect interests of farmers as US doubles tariff

Prime Minister Narendra Modi on August 7 said he "won't compromise on farmers' interests and is ready to pay heavy price" hours after the US imposed an extra 25% tariff on Indian exports, stoking concerns over the economic impact of worsening bilateral ties.

Speaking at the MS Swaminathan Centenary International Conference, Modi said he's "ready to pay heavy price to protect interests of farmers".

"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," he said.

On Wednesday, the US announced an additional 25% tariff on India over its import of Russian oil, taking the total to 50%. The new import tax, effective 21 days after August 7, will raise duties on some Indian exports to as high as 50% - among the highest levied on any US trading partner.

Last week, Trump threatened that he would penalise India for buying Russian oil and arms and referred to both countries as “dead economies”.

As part of the tariff negotiations, Modi government had offered to remove levies from US industrial goods and said it would increase defence and energy purchases, Moneycontrol reported. It also offered to scale back taxes on cars. But it refused to remove duties from farm and dairy products.

The US seeks greater access for its agricultural and dairy products in the Indian market, while India remains protective of its domestic farming sector, which supports a large rural population and operates under minimum support price (MSP) frameworks.

#WATCH | Delhi: Prime Minister Narendra Modi says, "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 personally, I will have to pay a heavy price for it, but I am ready for it.… pic.twitter.com/W7ZO2Zy6EE

— ANI (@ANI) August 7, 2025

The Ministry of External Affairs (MEA) has called Wednesday’s tariff “unfair, unjustified and unreasonable” and said its imports of Russian oil are based on its objective of securing the energy needs of its nation of 1.4 billion people.

Describing the US action as “deeply regrettable,” the MEA noted that several other countries continue to import Russian oil in line with their national interests. It said that singling out India for punitive measures was discriminatory and reaffirmed that the government would take “all necessary steps to safeguard the country’s national interests”.

Earlier this month, Moneycontrol reported that India is looking to diversify exports to European Union (EU), Peru and Chile in a bid to avert an adverse impact on labour-intensive exports following Trump’s tariffs. It also plans to fast-track talks on free trade agreements (FTAs) with the EU as well as Chime and Peru, a source in the know told Moneycontrol.