Trump's Tariff Pressured, Indian PM Affirms Will Not Victim Farmers

Indian Prime Minister Narendra Modi/PHOTO via Instagram @narendramodi

JAKARTA - Indian Prime Minister Narendra Modi emphasized that he would not sacrifice the interests of his country's farmers even though he had to pay an expensive price.

This is his first response after US President Donald Trump charged a 50% tariff on Indian goods.

"For us, farmers' welfare is the main thing," Modi said at an event in New Delhi.

"India will never sacrifice the welfare of farmers, the dairy sector, and fishermen, and I know personally that I have to pay a high price for that."

Trump announced an additional 25% tariff for Indian goods on Wednesday, increasing total import duties to 50% one of the highest tariffs imposed on any US trading partner.

The new tariff, which is effective August 28, is intended to punish India for continuing to buy Russian oil, Trump said.

While Modi did not explicitly mention the US or failed trade negotiations, his comments marked a clear defense of India's position.

Trade negotiations between India and the United States failed after five rounds of negotiations over disagreements over the opening of India's broad agricultural and dairy sectors and halting Russian oil purchases.

India's Ministry of Foreign Affairs called the US decision "very unfortunate" and said it would take all necessary steps to protect its national interests.

The US has yet to impose a similar tariff on China, the largest Russian oil buyer.

Experts say China's dominance in rare earth minerals is important for the high technology industry to exert its current influence that India does not have.

"The increase in US rates is illogical," said Dammu Ravi, secretary of economic relations at India's Ministry of Foreign Affairs.

"This is a temporary deviation, a temporary problem that will be faced by this country, but over time, we believe the world will find a solution," he added.

India has hinted that it will likely rebalance its global partnership.

Modi is preparing his first visit to China in more than seven years, indicating the potential for diplomatic restructuring amid rising tensions with Washington.

It was also reported that Brazilian President Luiz Inrypto Lula da Silva will start talks among the group of BRICS developing countries on how to address Trump's rates.

Lula said it plans to call Modi and Chinese President Xi Jinping. The BRICS group also includes Russia and South Africa.

"Countries that will seek mutual cooperation and economic engagement will benefit all parties," Ravi said.