NEW DELHI — Prime Minister Narendra Modi will chair a high-level Cabinet meeting at 1 p.m. today to assess the impact of the United States’ steep tariff hike on Indian exports. The move follows escalating trade tensions after Washington raised tariffs on Indian goods to a total of 50%.
Tariff Details
The latest 25% hike, announced by U.S. President Donald Trump on Wednesday, was justified on the grounds of India’s continued imports of Russian crude oil. This comes on top of a previous 25% tariff imposed on July 20, further straining bilateral trade relations.
India’s Reaction
The Ministry of External Affairs condemned the decision as “unfair, unjustified, and unreasonable,” stressing the importance of respecting India’s energy needs and strategic autonomy. Addressing the MS Swaminathan Centenary International Conference in Delhi, Modi reaffirmed his commitment to the agricultural sector, saying, “India will never compromise with the interests of its farmers, livestock holders, and fishermen.”
Trump’s Position
Trump has ruled out negotiations for now, telling reporters, “No, not until we get it resolved,” when asked about the possibility of talks before the new tariff takes effect on August 27.
The Cabinet is expected to consider measures to cushion the economic impact and explore diplomatic options to ease tensions with the U.S.
