PM Modi on US Tariff Deadline: India Will Withstand Pressure

Prime Minister Narendra Modi has given a strong message ahead of the US tariff deadline set for August 27, 2025, on Indian goods. He said, "Pressure may mount, but we will withstand it," emphasizing that India will not compromise on the interests of its farmers, small entrepreneurs, and small-scale industries despite the economic challenges ahead from the tariff hike. The US has increased tariffs on Indian imports to 50 percent, including an additional 25 percent duty on India's purchase of Russian crude oil. Modi's government is prepared to face this pressure with resilience and urged Indians to support local products by buying "Made in India" goods to reduce dependence on imports and strengthen the domestic economy.

The United States, under President Donald Trump's administration, announced a 50 percent tariff on Indian goods, largely as a response to India continuing to buy Russian crude oil despite Western sanctions on Russia. The additional 25 percent tariff began to take effect on August 27, 2025. This tariff hike is seen as punitive and comes amid strained trade relations between India and the US. India is among the world's largest importers of crude oil and had benefited from purchasing Russian crude at lower prices, which helped keep domestic fuel costs relatively stable. However, this new tariff policy from the US threatens to disrupt this balance, potentially leading to higher prices for consumers and exporters in India.

Prime Minister Modi addressed the nation, especially reaching out to small business owners, farmers, and animal husbandry workers, affirming that their interests will remain a top priority for his government. He stated that despite outside economic pressure, the government will "keep increasing our strength to withstand it." Modi invoked the spirit of India's independence movement, encouraging citizens to adopt swadeshi (self-reliance) by purchasing and promoting Indian-made products.

He also acknowledged that while India may "have to pay the price" economically due to these tariffs, protecting the livelihoods of millions who depend on small-scale industries and agriculture remains non-negotiable. Industries likely to be hit hardest include labor-intensive sectors such as gems and jewelry, textiles, and seafood, which rely heavily on exports to the US market. Modi’s speech reflected a resolve to build a self-sustaining economy capable of facing global economic challenges.

From a broader perspective, this tariff imposition is part of complex global economic and political dynamics involving US-Russia relations and US trade policies. While the US aims to pressure Russia through secondary sanctions on its trading partners, India faces the challenge of navigating these pressures while maintaining growth and protecting its economic interests.

The call to support swadeshi products could boost local industries in the long term but also places pressure on consumers to adapt to domestic alternatives that might currently be less competitive internationally. The increased tariffs may lead to higher costs for exporters and could impact jobs in sectors that depend on American markets.

Overall, PM Modi’s statement reflects a stance of resilience and steadfastness, encouraging India to rely more on its internal strengths and prioritizing the welfare of its most vulnerable economic groups. It emphasizes both the challenges of global trade politics and the potential for India to reinforce its economic independence in response to external pressures.

This developing situation will be closely watched by economists, businesses, and policymakers, as it will test India’s capacity to endure economic pressure while remaining engaged in global trade.

With inputs from agencies

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