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Modi Fires Back at Trump’s Oil Tariffs: “India Ready to Pay Heavy Price”

U.S. Slaps 50% Tariff on India Over Russian Oil Ties as PM Defends Farmers, Stokes Nationalist Resolve

India isn’t blinking.

Prime Minister Narendra Modi sent a firm, unambiguous message on Thursday: India won’t bow to American pressure—even if it means paying dearly. His remarks came just hours after U.S. President Donald Trump leveled a punishing 50% tariff on Indian imports, accusing New Delhi of continuing its energy ties with Moscow in defiance of Western sanctions.

This isn’t the first time Trump has gone after India. But Thursday’s move hit like a hammer. And Modi didn’t flinch.

Standing His Ground: “Farmers Come First”

The setting was the MS Swaminathan Centenary International Conference in Delhi—hardly the place one would expect foreign policy fireworks. But Modi turned the stage into a podium of protest, leaning into nationalism, economic sovereignty, and unwavering loyalty to rural India.

“For us, the interest of our farmers is our top priority,” he said, pausing between each word as if to underline the weight of every syllable. “India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it—and I am ready for it. India is ready for it.”

The applause in the hall was immediate. Outside, the message traveled even faster.

In one sentence, Modi managed to tap into India’s deepest emotions: self-reliance, defiance, and pride.

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Trump’s Tariff Blitz: A Direct Hit

Just 24 hours earlier, Trump had accused India of “bankrolling Putin’s war machine” by continuing to purchase Russian oil, defying price caps and sanctions. The White House later confirmed that Trump had approved an emergency 25% hike in tariffs on top of an already existing 25% levy—bringing total U.S. import duties on Indian goods to a staggering 50%.

The move, which affects textiles, pharma, chemicals, and electronics, is expected to cost India billions in lost trade access.

Trump didn’t hold back either. In a post on Truth Social, he wrote:

“Modi wants to have his cake and eat it too. He keeps buying cheap oil from Russia, while expecting access to our markets. That’s not how deals work.”

It’s unclear whether this decision had been coordinated with G7 partners. So far, the EU and UK have kept their distance, even as Western pressure on India to curb its Russian imports has steadily grown.

What’s at Stake Economically?

The economic ripple effects could be brutal—on both sides. But India’s export-heavy sectors are most at risk in the short term.

According to India’s Ministry of Commerce data (April-June 2025):

  • The U.S. accounted for $21.7 billion in Indian exports this quarter alone.

  • Pharmaceuticals made up 28% of total exports to the U.S.

  • Electronics, textiles, and processed foods followed closely.

A 50% tariff could wipe out profit margins overnight for thousands of Indian companies.

“This is not just about politics now,” said an executive from a major Mumbai-based pharmaceutical exporter. “We’re looking at canceled orders, layoffs, and massive price renegotiations starting tomorrow.”

Farmers, Oil, and the Bigger Fight

At the heart of the dispute is oil. India has consistently refused to halt purchases of discounted Russian crude, calling it a “pragmatic energy decision.”

The U.S. sees it differently.

But Modi isn’t budging. Especially not now.

“This is bigger than oil,” said political analyst Yamini Aiyar. “Modi is turning this into a sovereignty issue. It’s also about farmers—his most loyal political base. This plays right into his image as the protector of Bharat’s rural soul.”

And in an election year for both nations, that matters.

Nationalist Chatter, Business Panic

In political circles, Modi’s comments were met with cheers. In boardrooms? Not so much.

One garment exporter in Tiruppur called the tariff move “economic sabotage.” Another electronics supplier to U.S. retailers said their margins just got “shattered overnight.”

Yet in political WhatsApp groups and news studios, a different mood prevailed. Hashtags like #IndiaStandsStrong and #ModiVsTrump began trending by afternoon. TV anchors framed the day as a historic clash of titans—two men who don’t blink, staring each other down.

Here’s what both sides are reportedly preparing:

  • India: Emergency trade talks with Japan and the UAE to reroute certain exports

  • U.S.: Possible secondary sanctions on Indian banks that handle Russian oil transactions

  • G20 Diplomats: Working backchannels ahead of the September meet in Jakarta

A Chilly Future Ahead?

The Modi-Trump dynamic has always been complicated—part business, part bravado. But this week’s tit-for-tat might have pushed things too far.

An official from India’s Ministry of External Affairs, speaking on background, called the tariffs “disproportionate and politically motivated.” Another hinted that retaliatory tariffs may be announced in the coming days.

Meanwhile, oil continues to flow from Russia into Indian ports. And American tariffs continue to pile up at customs terminals.

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