Modi defies Trump tariffs, says willing to pay heavy price

Unfazed by United States President Donald Trump’s decision to impose a 50% tariff on most goods from India, Prime Minister Narendra Modi on Thursday struck a defiant note and said he will never compromise on the interests of farmers, fishermen and the dairy sector even if he had to pay a heavy price for it.

“For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know personally, I will have to pay a heavy price for it, but I am ready for it. Today, India is ready for the country’s farmers, fishermen and dairy farmers…” Modi said at a function in his first comments on Trump’s announcement of an initial 25% tariff and an additional duty for “assisting” Russia’s war against Ukraine by buying Russian Federation oil.

The Prime Minister’s comments make it evident that India is not going back down or sue for a trade truce as many nations have done when faced with the threat of high tariffs that are part of Trump’s tactics to extract favourable terms of trade. If Trump had assumed that his pressure tactics that would severely disadvantage Indian exports to the US will force India to climb down, he appears to have gravely miscalculated.

The Indian position, ahead of an expected visit by a US trade negotiation delegation, unambiguously reaffirms that Trump’s demands that the Indian farm and dairy sector be opened to American exports will not be met. India is not prepared to expose the politically sensitive sector to cheaper imports that will include GM crop products. Trump’s unilateral declarations and hectoring tone have raised hackles in India and Modi has seized the moment to strongly project himself as the protector of farming communities.

The inherent appeal to sovereignty and advocacy of farmers ties recognises the support these sections, that include several backward classes, have extended to Modi and his appeal among rural communities. The preparedness to “pay a personal price” sets the bar for the government and makes it clear that Modi has directly joined issue with Trump. As is inevitable, the India-US relationship is now being “re-politicised” after a relatively long period of bi-partisan support in both countries.

While Congress leader Rahul Gandhi’s accusation that the Prime Minister has been weak in responding to Trump’s threats, Opposition leaders and members of his own party are puzzled how not signing a deal on American terms can be labelled a weakness. By and large, most Opposition leader have agreed with the government that Trump’s tariff orders are unfair and that the US President has overlooked European and Chinese energy purchases from Russia.

Donald TrumpIndia-US relationsNarendra Modi. Geopoliticstrade tariff