'Won't come under pressure': India rules out concessions on agriculture and dairy despite Trump’s tariff strike, say govt sources

Prime Minister Narendra Modi and US President Donald Trump - File Photo

Even as the United States has announced a 25 per cent on Indian exports, India has firmly ruled out offering any concessions on agriculture, dairy, or genetically modified imports, reports CNN-News18 quoting top government sources.

“Farmers’ interest is paramount. We won’t come under any pressure, the government is clear,” sources told CNN-News18.

The statement comes in response to US President Donald Trump’s announcement on Thursday that Indian imports would face a 25% tariff starting August 1, in addition to an unspecified penalty. Trump justified the move by citing India’s high tariffs, non-monetary trade barriers, and its continued defence and energy ties with Russia.

“The impact of 25 per cent tariff is marginal and will not be alarming for Indian markets. There is no chance of compromising on farmers, dairy and MSMEs. There is also no chance of allowing import of genetically modified crops," the sources added.

Trump made the announcement in a post on his social media platform Truth Social, where he wrote: “India is our friend, but we have… done relatively little business with them because their tariffs are far too high… and they have the most strenuous and obnoxious non monetary trade barriers of any country."

He further took aim at New Delhi’s strategic relationship with Moscow: “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE- ALL THINGS NOT GOOD!"

“INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST," Trump concluded.

In April, Trump had initially proposed tariffs of up to 27 per cent on Indian goods, but those plans were paused to allow for continued negotiations. Since then, bilateral discussions have resumed, albeit with mixed signals.

US Trade Representative Jamieson Greer earlier commented, “We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them." He also noted, “Donald Trump’s trade agenda remains focused on market access for US exports, especially in sensitive sectors,” acknowledging India’s protectionist stance as a key concern.

Despite the current tensions, trade between the two countries remains robust. In FY 2024–25, India-US bilateral trade stood at USD 131.8 billion, including USD 86.5 billion in Indian exports and USD 45.3 billion in imports. Both Trump and Prime Minister Narendra Modi have previously spoken of a shared ambition to push this figure beyond USD 500 billion in the coming years.

India has already made certain tariff concessions on specific US goods in the past, such as Bourbon whiskey and motorcycles, in an attempt to ease frictions. But according to top Indian officials, critical sectors like agriculture and dairy remain non-negotiable.