Indian Prime Minister Narendra Modi has responded to President Donald Trump’s recent tariff increases on Indian goods. Modi stated, “India is ready” to defend its national interests, particularly those of its farmers, fishermen, and dairy producers.
On Wednesday, President Trump signed an executive order imposing an additional 25% tariff on India, citing the country’s continued purchase of Russian oil. This brings the total duties on Indian goods to 50%, a figure that ranks among the highest the United States has imposed on any nation. The order is set to take effect on August 27th.
In the wake of Western sanctions against Russia, India has increased its purchases of discounted Russian oil. This has not sat well with the Trump administration, which aims to curtail Russian energy revenues as a means to influence the ongoing conflict in Ukraine.
India was the 10th largest importer to the United States last year, with goods valued at $87 billion. Notably, India produced 44% of U.S. smartphones in the last quarter, more than any other country.
The significance becomes clear when we consider the potential economic impact. Alex Adamo, CEO of negotiation firm The Commercialiser, told Newsweek that Trump’s move is “not just a policy decision” but “a test of posture” that could shape U.S.-India relations for years to come.
India’s Ministry of External Affairs has called the U.S. decision “extremely unfortunate,” noting that other countries are taking similar actions in their national interest. Conversely, Hope for Ukraine CEO Yuriy Boyechko suggests that pressuring India could force Russia to consider peace by cutting off a significant source of oil revenue.
American negotiators are scheduled to arrive in India on August 25th. There is speculation that the U.S. tariffs could be reduced or withdrawn if India makes concessions, particularly in its agriculture and dairy sectors.