Prime Minister Narendra Modi has called for an emergency Union Cabinet meeting at 1 PM on Friday as tensions rise between India and the United States over new trade tariffs. This meeting comes just a day after US President Donald Trump announced an extra 25% tariff on Indian goods. This new tariff raises the total US duty on Indian imports to 50%, a significant blow to India’s exports.
The main reason for this increase, according to President Trump, is India’s continued purchase of oil from Russia, despite the US trying to isolate Moscow over its global policies. The US administration sees India’s oil trade with Russia as going against its interests and has decided to penalize India economically.
Media reports suggest that the Cabinet meeting will focus on how India should respond to the US decision and what steps the government might take next. The goal is to protect India’s strategic and economic interests, especially in the fields of energy, agriculture, and trade.
President Trump has made it clear that no trade talks will take place between the two countries unless the tariff issue is resolved. This puts a temporary stop to any new trade agreement between India and the US, one of the world's largest economies.
This recent tariff hike follows a previous 25% duty the US placed on Indian goods back on July 20. With this latest announcement, Indian exporters are facing up to 50% in total tariffs when sending products to the American market.
In response, the Indian Ministry of External Affairs strongly criticized the decision. In a statement, the ministry described the new tariffs as “unfair, unjustified, and unreasonable.” It added that India’s choices in energy supply and trade policy are based on strategic autonomy, meaning India will make decisions based on its own needs and priorities, not foreign pressure.
India has repeatedly explained that buying oil from Russia is essential to meeting the country’s energy needs at affordable prices. With over 1.4 billion people, energy is a crucial part of India’s development and economy.
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Speaking just hours after Trump’s announcement, PM Modi gave a powerful message while attending the MS Swaminathan Centenary International Conference in Delhi. He made it clear that India will not give in to external pressure and will always put the interests of Indian farmers, fishermen, and dairy workers first.
“For us, the welfare of farmers is the topmost priority,” Modi said during his speech. “India will never compromise the interests of its farmers, fishermen, or those in the dairy sector. I know I may have to pay a price for this, and I am ready.”
This statement has been seen as a direct response to President Trump’s actions, underlining that India’s policies are meant to support the common people, especially those working in agriculture and related industries.
The Indian government is also working to reduce dependency on imports in key areas and become more self-reliant. But for now, energy imports—especially crude oil—remain essential for keeping the country running. India imports over 80% of its oil needs, and Russian crude oil offers a cost-effective option that benefits both the economy and the public.
As the Cabinet prepares for its meeting, several possible actions are being considered. These include:
Filing a complaint with the World Trade Organization (WTO) over unfair trade practices
Imposing retaliatory tariffs on US goods
Negotiating through diplomatic channels while standing firm on India’s core interests
Exploring new trade partnerships with other friendly countries
Experts believe that this situation could affect India-US relations in the short term, but both countries will likely look for a long-term solution that supports mutual interests. The US is one of India’s top trading partners, and both sides benefit from strong economic ties.
However, Prime Minister Modi’s strong statement shows that India is not afraid to take a stand, even if it creates temporary tensions with global powers. The Cabinet meeting will likely play a key role in shaping India’s strategic response to this latest development.
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