PM Modi reacts to Trump's 50% tariffs: 'Prepared to pay the price...'

Prime Minister Narendra Modi, in his first reaction to Trump's tariffs on India, which now totals to 50 per cent, said that India is prepared to pay the price. "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. 

PM Modi’s response came during an address at the MS Swaminathan Centenary International Conference in Delhi. He was referring to the additional 25 per cent tariffs, on top of the 25 per cent tariffs announced by the US last week. While taking the overall tariffs to 50 per cent, Donald Trump also offered a lifeline to India – a team of negotiators from the US is scheduled to visit India on August 25 to discuss the trade deal. The trade deal, on the other hand, has been stretched on for longer than expected because of New Delhi’s resistance to opening up the dairy and agriculture sectors. 

According to experts, there is a scope of the tariffs being slashed, provided India offers some concessions or opens up the dairy and agriculture sector as per the US’ demands. Opening up the sectors would pose a threat to the livelihoods of farmers, something PM Modi has strongly indicated India is not willing to do. 

It is safe to say that the US-India trade standoff has surprised even the foremost experts. India that had enjoyed cordial, friendly even, relations with the US for decades, has been slapped with some of the highest tariffs. 

The official stand of the US administration is that India is buying Russian oil, which in turn is enabling Moscow to continue its war on Kyiv. However, as the Indian government pointed out, there’s duplicity in that reasoning. It is not only India, but other countries too, including the US itself and China, as well as the European Union, who have trade ties with Russia, and still continue to import goods. 

Another viewpoint was offered by Director of the South Asia Institute at the Wilson Center, Michael Kugelman, who said that the tariff penalty on India could be because New Delhi refused to credit Trump for mediating between India and Pakistan. Trump has numerous times claimed credit for the ceasefire between New Delhi and Islamabad, something the former has denied repeatedly.