India-US trade talk: Renowned filmmaker Shekhar Kapur has hailed Prime Minister Narendra Modi’s uncompromising stance against US President Donald Trump’s tariff measures, calling it a statement of India’s “economic independence”. 

In a post on X, Kapur said, “PM ⁦@narendramodi’s response to President #DonaldTrump’s #tariffs is nothing short of a declaration of Independence. Every leader does what’s best for their nation, just as President Trump is doing for #US and #MAGA.”

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Modi’s defiant response to tariffs

Prime Minister Modi said on Wednesday that he was prepared to “pay a very heavy price” for resisting Washington’s demands, as India took a firm line following the US announcement of punitive export tariffs. Trump, in an executive order, imposed an additional 25% tariff on Indian exports, citing India’s continued purchase of Russian oil as the reason. This comes on top of an earlier 25% tariff already levied, bringing the total to 50% by August 27 if no agreement is reached.

India’s foreign ministry denounced the move as “unfair, unjustified and unreasonable” and accused Washington of double standards, pointing out that other nations importing Russian oil had not faced similar penalties.

According to officials, one of the biggest sticking points in ongoing trade negotiations has been US pressure for India to open its markets to American genetically modified crops and to allow duty-free imports of US farm and dairy products. The Modi government has insisted that these demands are “non-negotiable”, citing the need to protect India’s vast farming community.

Speaking on Wednesday night, Modi reaffirmed this position, saying, “India will never compromise on the interests of its farmers, livestock rearers and fisherfolk. And I know that I will personally have to pay a very heavy price for this, but I am ready.”

While Modi’s speech was seen by supporters as a strong defence of India’s sovereignty, reactions from the opposition were mixed. Congress MP Shashi Tharoor suggested the tariffs hinted at “some other hidden message from Washington” and urged India to retaliate with similar duties on US goods. Congress president Mallikarjun Kharge condemned the use of tariffs to pressure India into altering its foreign and trade policies, stressing that “India’s national interest is supreme.”

However, some opposition leaders also took aim at the government. MP Tejashwi Yadav accused Modi of “dancing to America’s tune”, suggesting that the prime minister’s foreign policy had invited such punitive action.

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Economic stakes

The United States remains India’s largest export destination, with shipments worth nearly $87bn (£65bn) in 2024. Experts warn that a 50% tariff on Indian goods could deal a serious blow to sectors such as textiles, ready-made garments, steel, auto-components, and gems. Such measures, they say, could push US buyers towards regional competitors like Vietnam, Bangladesh, and China, undermining India’s market position.