Modi Refuses to Back Down After Trump Imposes 50% Tariff on India

Indian Prime Minister Narendra Modi is digging in his heels after President Donald Trump slapped a 50% tariff on Indian goods, delivering a powerful blow in response to New Delhi’s continued purchases of Russian oil.

“India will never compromise on the wellbeing of its farmers, dairy sector, and fishermen,” Modi said Thursday in New Delhi. “And I know personally I will have to pay a heavy price for it.”

That “heavy price” came just a day after Trump doubled the tariff rate on Indian exports, following the collapse of trade talks over farm sector protections and India’s refusal to cut economic ties with Russia.

The additional 25% duty, which takes effect August 28, pushes the total tariff to one of the highest levied by the U.S. on any trading partner. The Trump administration has made clear: countries funding Putin’s war machine won’t get a free ride in the American market.

Modi didn’t name the United States, but his defiance was unmistakable. Meanwhile, India’s foreign ministry called the move “extremely unfortunate” and vowed to “take all necessary steps to protect its national interests.”

Here’s what triggered the breakdown:

• India refused U.S. demands to open up its massive agriculture and dairy markets.

• It also increased purchases of discounted Russian oil, despite global sanctions and pressure from the West.

• As a result, Trump imposed secondary tariffs to target countries that continue trading with Russia starting with India.

Modi, for his part, is signaling that he may pivot eastward. His government is preparing a diplomatic visit to China the first in seven years in what some see as a geopolitical realignment aimed at building alliances with other U.S.-targeted nations.

Brazilian President Luiz Inácio Lula da Silva said Wednesday he plans to raise the issue at the next BRICS summit, coordinating with China, Russia, India, and South Africa to push back against Trump’s tariffs.

“Like-minded countries will look for cooperation and economic engagement that will be mutually beneficial,” said Indian Foreign Ministry official Dammu Ravi.

Meanwhile, India’s economic elites and industrial leaders are growing nervous.

• India’s equity market dropped another 0.5% Thursday, hitting a 3-month low.

• Export industries warned that they can’t absorb such steep duties, calling for emergency government support.

• Reliance Industries, one of India’s largest conglomerates, warned in its latest annual report that geopolitical and tariff risks could affect trade flows and consumer demand.

Still, Trump is unmoved, viewing the tariffs as both an economic lever and a moral line in the sand. As he put it last week “They [India] don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the tariff paid by India to the USA.”

China remains untouched for now but experts point out that its dominance in rare earth minerals and critical supply chains gives it leverage that India lacks. That could change fast if Trump expands the secondary tariff threat to Beijing.

While Democrats in Washington whine about “global diplomacy,” Trump is taking decisive action, putting American interests first and punishing nations that fuel authoritarian regimes.

Modi may posture at home, but the message from Washington is clear: You can’t support Putin and still expect a sweetheart trade deal with the United States.

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