PM Modi says ready to pay 'heavy price' for farmers' welfare as US trade war continues

Prime Minister Narendra Modi on Thursday said he is prepared to bear the cost of protecting India’s agricultural interests, as the country faces escalating trade tensions with the United States, further facing tariffs from Washington, as high as 50%.

Speaking at the MS Swaminathan Centenary International Conference, PM Modi said, “For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers."

Acknowledging the possible consequences of standing firm on domestic priorities, he added, “I know we will have to pay a heavy price for it and I am ready for it. India is ready for it."



The remarks come amid a deepening trade standoff, triggered by US President Donald Trump's announcement of 25% import duty on Indian goods, effective from August 7. The US has cited India’s continued purchase of crude oil and military hardware from Russia as grounds for the action for another 25% tariff hike, effective August 28.

Also Read: Reciprocal tariffs begin at midnight, billions of dollars will flow into USA, says Trump

At the heart of the ongoing friction is the proposed India-US Bilateral Trade Agreement (BTA), which has seen limited progress since talks began in March 2025. One of the key sticking points is India’s refusal to provide duty concessions on agricultural goods, dairy, and genetically modified (GM) food products, areas that the US has marked as high-priority in its negotiations.

Why India won't compromise on agri and dairy sectors?

As per a PTI report, government sources maintain that India’s stance is driven by structural and livelihood concerns. Over 700 million people are connected to the farm sector in India, and policymakers argue that tariff protections are necessary to prevent market disruptions caused by subsidised US agri-exports, especially during periods of global price volatility.

Unlike the US, where agriculture is largely corporatised, India views farming as a livelihood issue. Removing tariffs, officials argue, would expose Indian farmers to unfair competition and compromise food security.

Also Read: Trump's additional 25% tariffs may dent India’s FY26 growth by 0.4%

On dairy, India has pushed back against US demands, citing long-standing regulatory standards. The US has raised objections to India’s GM-free feed certification and facility registration protocols, which it claims bar American dairy products. However, India maintains that these rules are essential, particularly because imports from animals fed with animal-derived feed are considered unacceptable due to religious sensitivities.

The next round of BTA talks is scheduled for later this month, with US Assistant Trade Representative for South and Central Asia Brendan Lynch expected to visit India on August 25. As trade tensions rise and tariff deadlines loom, both sides are under pressure to find common ground.