Will never compromise on farmers’ interests, says PM Modi, as US tariffs come into effect

A day after Trump announced an additional 25 per cent tariff on Indian imports to the US, Prime Minister Modi has sent across a strong message by stressing that India will never compromise with the interests of its farmers and fishermen.

“The interest of farmers is our top priority. India will never compromise with the interests of its farmers, livestock holders, and fishermen. And I know that I will have to pay a huge price for this personally, but I am ready. India is ready, for the sake of the country’s farmers, fishermen, and livestock holders,” Modi said while addressing the MS Swaminathan Centenary International Conference at Delhi on Thursday (August 7).

Also Read: Trump warns of ‘a lot more’ secondary sanctions after piling 50 pc tariff on India

Trump’s tariffs come into effect

Even as he said this, the initial 25 per cent tariffs announced by the US on Indian imports came into effect, with President Donald Trump saying billions of dollars from countries that have taken advantage of America will now start flowing into the country.

“It’s Midnight!!! Billions of Dollars In Tariffs Are Now Flowing Into The United States Of America!” Trump said in a post on Truth Social as the clock struck 12 midnight in the US, ushering in the August 7 date when the reciprocal tariffs announced on nations by Trump last week come into effect.

"Reciprocal tariffs take effect at midnight tonight! Billions of dollars, largely from countries that have taken advantage of the United States for many years, laughing all the way, will start flowing into the USA. The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail!” Trump said in another post.

Also Read: Trump plans 100 pc tariff on computer chips, unless companies build in US

Modi’s respects to Swaminathan

Paying his respects to MS Swaminathan, the architect of the Green Revolution, the prime minister said building on the legacy of food security, the next frontier for our agricultural scientists is to ensure nutritional security for all.

India exports several agricultural products to the US, and is one of the sectors that will face the brunt of the tariffs that have been imposed by Trump.

Earlier, responding to the tariffs, India said the targeting of the country is unjustified and unreasonable. India said that, like any major economy, it will take all necessary measures to safeguard its national interests and economic security.

Tariffs for nearly 70 nations

Last week, the White House announced that India will face tariffs of 25 per cent after Trump issued an executive order listing the various duties that Washington will impose on exports from countries around the world.

In the Executive Order titled ‘Further Modifying The Reciprocal Tariff Rates’, Trump had announced tariff rates for nearly 70 nations. The 25 per cent “Reciprocal Tariff, Adjusted” imposed on India came into effect on Thursday.

The tariffs in the list ranged from 10 per cent to 40 per cent, with Japan being charged 15 per cent, Laos and Myanmar (40 per cent each), Pakistan (19 per cent), Sri Lanka (20 per cent), and the United Kingdom (10 per cent).

In addition to the 25 per cent tariff announced last week, Trump on Wednesday (August 6) imposed another 25 per cent levies on India for its purchases of Russian oil, bringing the total duties slapped on India to 50 per cent, among the highest imposed by the US on any country in the world.

The additional 25 per cent duty will come into effect after 21 days or August 27.

Also Read: Trump's 50 pc tariff: India says it's unfair and unreasonable

‘Temporary setback’

On an additional 25 per cent tariff on India for Russian purchases, Indiaspora, a nonprofit US-based organisation of global Indian diaspora leaders across diverse professions, said in a statement that it believes the “current setback" in what is otherwise an enduring, robust, and broad-based people-to-people relationship will be temporary.

“We remain optimistic that the ongoing discussions, when concluded, will reflect the aspirations of both nations and the global Indian diaspora that believes in them,” Indiaspora said.

It stressed that with over five million Indian-Americans contributing meaningfully to the US economy, culture, and civic life, the diaspora serves as a living bridge between the world’s two largest democracies.

‘US-India relationship is essential’

“We believe the US-India relationship is not just important - it is essential. As global dynamics shift, this economic partnership should stand as a cornerstone for stability, innovation, and progress in the 21st century,” it said.

Ajay Bhutoria, an Indian-American community leader and former adviser to President Joe Biden, said he strongly opposes Trump’s decision to impose a 50 per cent tariff on Indian goods.

“India supplies nearly half of America’s affordable generic drugs. These tariffs will inflate prescription prices, hitting families, seniors, and small businesses hard. Everyday items - spices, lentils, Diwali clothing - will become pricier, with reports estimating apparel and footwear costs could rise 37 per cent,” he said.

Also Read: Trump imposes 50 pc tariff on Indian goods over Russian oil imports

Bhutoria noted that Trump granted China a 90-day tariff pause while targeting India, a key democratic ally, for its energy needs.

"This double-standard risks undermining the robust USD 186 billion US-India trade partnership and our shared goal of reaching USD 500 billion by 2030.”

He underscored that the US and India share a strong, vibrant partnership built on mutual respect, economic ties, and shared values.

“We must work through these challenges together, not through divisive tariffs that hurt both nations. I urge both governments to prioritise dialogue and fair-trade solutions that strengthen our alliance and keep costs affordable for our communities.”

Over the last few months, India and the US held several rounds of negotiations for a bilateral trade deal, but it could not be sealed in view of sharp divergences in certain critical areas, including agriculture and dairy.

(With agency inputs)