US President Donald Trump doubled the tariffs on India. The present 25 percent in tariffs has now been hiked to 50 percent, with this move linking it to India's persistent oil trade with Russia.
PM Modi's Indirect Response at Delhi Event
Prime Minister Narendra Modi indirectly responded to the tariff increase. He spoke at a Delhi function paying tribute to late agricultural scientist M.S. Swaminathan. Modi reaffirmed that safeguarding Indian farmers is his government's top priority.
Farmers Interests Take Center Stage
Modi said, "We will never compromise on the interests of farmers, fishermen, or milk producers." Modi further added that he is ready to pay the price himself for protecting their interests. As per Modi, India's stance is clear and solid.
Tariff Hike Timelines and Indian Sectors Impact
The first 25% tariffs came into effect last Thursday. Trump has now announced that another 25% will be applied from the 27th of this month. The rise hit a number of Indian industries, such as textiles, seafood, and leather products. Shrimp and animal-based exports are the most impacted.
U.S. Push for Lower Agricultural Tariffs
The U.S. has long called on India to reduce tariffs on farm imports. Indian authorities fear that this may harm local farmers. In a bid to avoid uproar, India had earlier sought the exemption of farm products from tariffs.
No Final Agreement Despite Multiple Talks
Despite multiple rounds of talks between both governments, no agreement has been reached. The failure to settle this issue may have contributed to the U.S. doubling tariffs. Meanwhile, Washington also disapproves of India's continued oil purchases from Russia.
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