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Rising Kashmir > Blog > Breaking > “Farmer interests top priority,” says PM Modi after Trump imposes additional tariffs
BreakingNational

“Farmer interests top priority,” says PM Modi after Trump imposes additional tariffs

ANI
Last updated: August 7, 2025 10:35 am
ANI
Published: August 7, 2025
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In a strong message against the tariffs imposed by the United State, Prime Minister Narendra Modi on Thursday asserted that farmers remain India’s top priority and that the country would never compromise their interests.

“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,” PM Modi said while addressing the

His remarks come amid chaos over the Trump administration doubling the tariff imposition to 50 per cent on goods from India. During trade negotiations the United States was pushing for greater access to India’s agricultural market, specially corn, soybeans, and cotton.

However, India has so far resisted opening of the agricultural sector, and dairy products, due to concerns about domestic livelihoods and potential impacts on farmers.

Earlier on Wednesday, US President Donald Trump signed an Executive Order imposing an additional 25 per cent tariff on imports from India.

According to the order issued by the White House, Trump cited matters of national security and foreign policy concerns, as well as other relevant trade laws, for the increase, claiming that India’s imports of Russian oil, directly or indirectly, pose an “unusual and extraordinary threat” to the United States. After the order, the total tariff on Indian goods will be 50 per cent. While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days and will be imposed on all Indian goods imported into the US, except for goods already in transit or those meeting specific exemptions.

The Executive Order also allows for modifications based on changing circumstances, including potential retaliation by other countries or steps taken by Russia or India to address the national emergency.

Meanwhile, economists feel the US additional tariff move could dent the India’s GDP growth in FY26 by 0.4 per cent.

Sonal Badhan, Economics Specialist at Bank of Baroda, told ANI, “We had initially priced in approx. 0.2 per cent impact (on GDP growth) of 25-26 per cent tariffs imposed by the US on imports from India. The additional 25 per cent hike will come into effect after 21 days. During this time or in the coming months, there is a likelihood that lower rates may be negotiated.”

She added that depending on the final trade agreement, the total impact of these tariffs on GDP growth may range between 0.2-0.4 per cent. Sectors likely to be affected include garments, precious stones, electronics, pharma, auto parts, and MSMEs.

While the executive order imposes tariffs on most Indian imports, some items have been excluded under Annex II of Executive Order 14257. These include certain mineral substances, metallurgical ores, fuels, industrial chemicals, and pharmaceutical precursors. (ANI)

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TAGGED:IndiaPrime Minister Narendra ModiRussiaTarrifs

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