New Delhi: A day after the Trump administration imposed an additional 25 percent tariff on India as penalty for New Delhi’s continued purchase of Russian oil, Prime Minister Narendra Modi said he would not let the interests of Indian farmers, fisherman and dairy farmers be compromised even if he had to pay a “heavy price” for it.
Speaking at the M.S. Swaminathan Centenary International Conference in New Delhi Thursday, Modi said: “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 we will have to pay a heavy price for it and I am ready for it. India is ready for it.”
Modi’s statement comes in the backdrop of worsening India-US ties, tough negotiations over a bilateral trade agreement with Washington and US President Donald Trump’s ultimatum to Russia to end the war in Ukraine.
Indian and US trade negotiators could not finalise the trade deal by the 1 August tariff deadline set by Trump. This led to the Trump administration imposing 25 percent tariff on India—significantly higher than for its Asian counterparts, as well as Pakistan.
While the Indian government was grappling with the tariff rate, Trump signed an executive order Wednesday, imposing an additional 25 percent tariff on India for importing and processing Russian oil.
The two decisions by the Trump administration effectively increase the applied tariffs to India to 50 percent.
However, it is crucial to note that the fine print of the US executive order states that the additional 25 percent tariff on India will come into force 21 days from 6 August.
US’ trade negotiators are set to arrive in New Delhi on 24 August, leaving just enough room for a last-minute trade agreement to be finalised.
The Indian government has responded to the increased tariffs by labelling the action “unfair, unjustified and unreasonable”.
Randhir Jaiswal, spokesperson for the Ministry of External Affairs (MEA), Wednesday said: “It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”
He promised that India will take all “actions necessary to protect its national interests”.
India has maintained that the purchase of Russian oil is a “vital national compulsion”.
(Edited by Nida Fatima Siddiqui)
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