 "Trump’s 50% tariffs to take effect tomorrow: Why India refuses to cower to US pressure")
Will he or won’t he? That’s been the biggest question that Indian exporters have been asking of Donald Trump and his tariff threat. And on Monday (August 25), the nation got its answer as the United States officially issued a public notice on the same, in which it has outlined plans on how it would levy the total 50 per cent tariff on New Delhi.
But, India has remained resilient and defiant in the face of Trump’s tariffs. In fact, hours before the notice was issued by Washington, Prime Minister Narendra Modi said that India would withstand the economic pressure as it continues to strengthen its resilience.
But what’s the reason behind India’s note of defiance?
US issues notice on tariffs
On Monday, the Department of Homeland Security issued a notice stating that the increased levies would hit Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025.”
The notice is a clear indicator that the White House is planning to push ahead with the heightened levies on India. Earlier on August 6, Trump issued an executive order imposing an additional 25 per cent tariffs on Indian imports to the US over the country’s purchase of oil from Russia. At the time, Trump had cited “threats to the United States by the Government of Russian Federation,” as the reason behind the additional 25 per cent duty on import of goods from India.
This comes on top of the 25 per cent tariff, the US president has already levied on New Delhi, taking the total tariff to a whopping 50 per cent. The 50 per cent tariff rate places India alongside Brazil in facing the world’s highest trade barriers . Estimates by Jefferies show that the tariff rate will imply that a large majority of India’s $87 billion (2.2 per cent of GDP) worth of exports to the US could be at risk.
India’s note of defiance against Trump’s tariffs
Ever since Trump has announced the secondary tariffs on India for its purchase of Russian oil, New Delhi has struck a defiant note against Washington.
On Monday, just hours before the notice was issued, PM Narendra Modi in a very subtle message to Trump said that his government would not allow any harm to come to small entrepreneurs, farmers, and cattle rearers.
Hours before Trump’s additional 25% tariffs hit India, PM Narendra Modi’s message to the US:
— Siddharth Zarabi (@szarabi) August 26, 2025
No matter the pressure, India won’t bend - it will find its own way despite being a victim of unfair pressure.
Hitting back at the ‘economic selfishness’ shaping global trade, the PM… pic.twitter.com/fMERNMcn91
“All of you are witnessing the kind of politics driven by economic self-interest that is happening in the world today. From this land of Ahmedabad, I would like to say to my small entrepreneurs, to the shopkeepers, to the farmers and cattle rearers. For Modi, your interest is paramount. My government will not allow any harm to come to small entrepreneurs, to farmers, or to cattle rearers. No matter how much pressure comes, we will keep increasing our strength to withstand,” PM Modi said without naming the US.
He had struck a similar note earlier during an event on August 7. At that time, he said that he was ready to pay a heavy price, underscoring that India would never compromise on the interests of farmers, fishermen and dairy farmers.
#WATCH | Delhi: Prime Minister Narendra Modi says, "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.… pic.twitter.com/W7ZO2Zy6EE
— ANI (@ANI) August 7, 2025
“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,” he then said.
India has also called out the US’ hypocrisy when it comes to purchase of Russian oil. The Ministry of External Affairs in a statement called out Washington for its decision to levy tariffs on India over Russian oil. It noted that “that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion”.
It further added that the “targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security”.
Then, last Saturday, External Affairs Minister S Jaishankar also rejected Washington’s criticism that it is running a “profiteering scheme” by buying discounted Russian crude oil. “When people say we are funding the war or putting money in the coffers of (President Vladimir) Putin, the Russia-European Union trade is bigger than India-Russia trade. So is Europe not putting money into Putin’s coffers,” he asked.
Even India’s ambassador to Russia, Vinay Kumar , clarified on Monday that “Indian companies will continue buying (oil) from wherever they get the best deal”.
Points of friction between India and US
For Trump and Washington, India’s purchase of Russian oil has been the biggest bone of contention and the reason for the secondary tariffs being imposed. The US president and his administration have accused New Delhi of funding Moscow’s invasion of Ukraine by purchasing its crude.
However, India has noted that its purchase of oil from Russia is in its national interests. According to the National Bureau of Asian Research, India imports almost 85 per cent of the oil it requires to satisfy the appetite of an expanding economy, including a substantial refining and re-export business. Before 2022 and the Russian invasion of Ukraine, India’s most significant oil supplier was Iraq (24 per cent), Saudi Arabia (16 per cent), the United States (10 per cent) and Russia (two per cent).
However, the war and the subsequent sanctions on Russia changed the dynamics. In fact, Washington encouraged India to purchase crude from Russia in order to strengthen the stability of the global energy market. This was because Western-led sanctions on Russia disrupted traditional supply chains. Moreover, India purchasing Russian oil has also helped in keeping prices down for consumers worldwide. Sources have even said that global crude prices could jump as high as $200 (Rs 17,560) per barrel if India were to stop buying Russian oil.
Even S Jaishankar alluded to this in his remarks last Saturday. He said that India’s procurement of Russian crude oil is driven by national interests. “That’s our right. In my business, we would say that’s what strategic autonomy is about,” he said.
He further added, “We are buying (Russian) oil to stabilise the oil market. Yes, it is in our national interest. We have never pretended otherwise, but we also say it is in global interest.”
But Russian oil isn’t the only reason behind Trump’s 50 per cent tariffs on India. India’s refusal to grant America access to Indian markets for its agricultural, dairy, and genetically modified (GM) products has been a bone of contention during its trade deal talks.
Washington has been pressing India to open its markets to a wide range of American products, including dairy, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts. While New Delhi has expressed willingness on items such as dry fruits and apples, it is holding back on corn, soybeans, wheat, and dairy products.
That’s because GM crops are widely perceived in India as harmful to human health and the environment, and several groups affiliated with the Bharatiya Janata Party (BJP) have expressed opposition to their introduction.
There’s also the issue of dairy products. India is sceptical of opening its dairy market to the US, as they are concerned that cattle in the US are often fed animal byproducts — a practice that conflicts with Indian food habits.
What next for India-US
As of now, uncertainty is the way forward when it comes to India-US ties. Indian exporter groups estimate that Trump’s tariffs could affect nearly 55 per cent of India’s $87 billion in merchandise exports to the US, while benefiting competitors such as Vietnam, Bangladesh and China.
With inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
