PM Modi Vows to Protect Farmers and Small Industries as US Imposes Additional 25% Tariff on Indian Goods
- 26th August 2025
- 11:30:00 AM
- 3 min read
Summary
The US has imposed an additional 25% tariff on Indian imports from August 27, raising total duties to 50%, citing India’s continued Russian oil purchases. In response, Prime Minister Narendra Modi vowed not to compromise on the interests of farmers, small businesses and cattle-rearers, even as Indian exporters brace for significant challenges.
Mumbai | August 26 – With the United States formally notifying an additional 25% tariff on Indian imports effective August 27, 2025, Prime Minister Narendra Modi has assured that India will not compromise on the interests of farmers, small businesses, and cattle-rearers, even as bilateral trade tensions intensify.
The new duties, announced under President Donald Trump’s Executive Order 14329, will push the total tariff burden on Indian goods to 50%, a move that threatens to disrupt export flows to one of India’s most critical markets.
PM Modi: “India Will Bear the Pressure”
Speaking just hours before the tariffs take effect, Modi struck a defiant tone, declaring that global politics is now driven by economic interests where “everyone is concerned about just themselves.”
“In such a scenario, I want to tell small entrepreneurs, farmers and cattle-rearers that for Modi, your interest is paramount. My government will never compromise on your interests. No matter how much pressure comes, we will bear it. But, your interests will never be harmed,” the Prime Minister said.
His remarks are seen as a direct response to Washington’s pressure campaign linking India’s continued imports of Russian oil with the sharp tariff escalation.
What the US Notification Says
The official notification from the US Department of Homeland Security, published in the Federal Register, specifies that the 25% additional duty will apply to “products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025.”
📄 Official Notification:
Goods already in transit before August 27 may qualify for exemption, provided they clear customs before September 17, 2025.
Impact on Trade and Business
The tariff hike is expected to hit several of India’s leading export sectors, including:
- Textiles and garments – key suppliers to US retailers may face sharp cost disadvantages.
- Engineering goods and auto components – likely to lose competitiveness against Southeast Asian rivals.
- Agricultural produce – such as rice, spices and marine exports could see reduced demand.
Industry bodies such as the Federation of Indian Export Organisations (FIEO) have criticised the move as “unjustified and unreasonable,” warning that exporters are already operating under pressure from global slowdown and currency volatility.
US-India Trade Relations at Crossroads
The tariff escalation underscores the growing strain in US-India economic ties. While Washington maintains the sanctions aim to weaken Russia’s war economy, New Delhi insists its oil imports are guided by energy security and affordability for its population of 1.4 billion.
Despite the tensions, analysts believe backchannel talks will continue in an attempt to minimise the damage. India is expected to explore remedial measures at the World Trade Organization (WTO) while reinforcing its long-term strategy of trade diversification and economic self-reliance.
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