Setting the record straight on steep hike in US tariffs, Prime Minister Narendra Modi hit back at Trump on Thursday saying that India is ready to pay the hefty price to protect its farmers. The statement comes after Trump doubled the tariffs on Indian goods to 50% for continuing oil purchase from Russia. The PM added that national interest is paramount and that the progress of the country depends on its farmers.
Modi said that protecting the interests of farmers, fishermen and dairy workers is the government’s highest priority. He made it clear that India will not make any compromises when it comes to their welfare. He also acknowledged that he may face serious political or personal costs for this stand, but said he is prepared to face them. According to him, the country is fully committed to supporting its farming and coastal communities.
India’s strong stance against Trump’s tariffs
The Ministry of External Affairs, on Wednesday, strongly criticised the United States for imposing extra tariffs and called the move unfair and unreasonable. The MEA pointed out that the US was targeted India’s oil trade with Russia, even when it had clearly explained the reasons for continuing those imports. The MEA said India’s oil purchases are based on market conditions and are done to make sure that 1.4 billion Indians have access to affordable energy.
Calling the US action unfortunate, the ministry also noted that many other countries are still buying oil from Russia to meet their own needs. It said punishing only India for this was biased and added that the Indian government would take all necessary steps to protect its national interests.
US administration could implement similar tariffs on China
After the announcement of new trade penalties, Trump had suggested that more secondary sanctions could be coming soon. Speaking to reporters at the White House, he said it had only been a few hours since the decision and more actions could follow. He also indicated that similar steps might be taken against China. When asked if the US planned to impose more tariffs on China, Trump said it was possible, depending on how things go.
Trump on Wednesday imposed an additional 25% tax on goods coming from India. According to the White House, the decision was based on national security and foreign policy concerns. The US claims that India’s ongoing import of Russian oil, whether directly or indirectly, poses a serious threat to American interests.
With this new move, the total tax on Indian goods entering the US will rise to 50%. The first part of the tariff begins on August 7, while the additional 25% charge will start 21 days later. The higher duty will apply to all Indian goods entering the US, except those already on the way or those that qualify for specific exemptions.