In a firm response to the United States’ increased tariffs, Prime Minister Narendra Modi on Thursday reaffirmed that protecting the interests of Indian farmers remains the nation’s top priority, emphasizing that India will never compromise on their welfare. “Our farmers, fishermen, and dairy producers are our top priority. We will not make any compromises when it comes to their interests,” said PM Modi, adding, “I understand the cost of this decision, and I am prepared to face it. India is ready to stand firm.”

His remarks come in the wake of President Donald Trump’s administration doubling tariffs on Indian imports to 50%. The U.S. has been pressing India for broader access to its agricultural markets, particularly for products like corn, soybeans, and cotton. However, India has resisted opening up its farm and dairy sectors due to concerns over rural livelihoods and the impact on small-scale farmers.

On Wednesday, President Trump signed an Executive Order imposing an additional 25% tariff on Indian goods, citing national security and foreign policy reasons. The order claims that India’s oil trade with Russia, whether directly or indirectly, poses a significant threat to U.S. interests. Under the order, the total tariff on Indian imports will now stand at 50%. While the initial 25% levy took effect on August 7, the added duty will be implemented after 21 days, applying to all imports from India except those already en route or exempt under specific conditions. The Executive Order also leaves room for adjustments based on future developments, including possible responses from other countries or actions by Russia or India to mitigate the stated national emergency.

Economists have warned that the increased tariffs could impact India’s economic growth. Sonal Badhan, an economist at Bank of Baroda, noted that the initial estimate was a 0.2% hit to GDP growth due to the original tariffs. With the additional 25% now announced, the total potential impact could range between 0.2% and 0.4% depending on future negotiations. Sectors likely to feel the most pressure include textiles, electronics, auto parts, pharmaceuticals, and MSMEs. However, some imports are exempted under Annex II of the Executive Order 14257, including specific minerals, fuels, industrial chemicals, and pharmaceutical inputs.