Dammu Ravi, Secretary of Economic Relations, Ministry of External Affairs said no logic behind Trump's hike in tariff.
PM Modi said India is not going to give into the pressures from the United States over tariff, regardless of the personal cost.
A senior Indian diplomat on Thursday said that there is no logic behind Trump's 50 percent tariff and that negotiations with the United States will continue.
Dammu Ravi, Secretary of Economic Relations, Ministry of External Affairs, said that the decision to spike tariff is “unilateral”, PTI reported. "This is a unilateral decision. I don't think there is any logic or reason in the way it is done."
He informed that the Ministry of Commerce is responsible for the negotiation from the Indian side, adding that there are probable solutions in the wake of Trump’s hiked tariffs.
"Perhaps, this is a phase we have to overcome. The negotiations are still going on. So, we are confident that solutions will be found in the course of time in looking at mutually beneficial partnerships," Ravi said.
"We were very close to finding a solution, and I think that momentum has taken a temporary pause, but it will continue," he said, mentioning that the tariff is “a temporary aberration, a temporary problem that the country will face.”
Ravi dismissed suggestions of deliberately avoiding the US dollar, but acknowledged that India is exploring alternative mechanisms for bilateral trade. He noted that when countries encounter tariff “walls,” they begin seeking new markets—naming the Middle East, Latin America, Africa, and South Asia as key regions India will now focus on. Emphasising resilience, Ravi asserted that the high tariffs will not harm Indian industry, nor will they “pull back” or derail India Inc.’s momentum.
What did Modi Say?
Prime Minister Narendra Modi on Thursday asserted that India is not going to give into the pressures from the United States over tariff, regardless of the personal cost.
The PM was speaking at the M.S. Swaminathan Centenary International Conference. His remarks come at a time when agriculture—and India’s ongoing purchase of Russian oil—remain contentious issues in ongoing trade negotiations with the United States.
The government said it would do whatever is required to safeguard its national interest. New Delhi responded strongly to the US pressures, labelling them “unfair, unjustified, and unreasonable.”
On Wednesday, just weeks ahead of a planned visit by U.S. trade negotiators to New Delhi on August 25, US President Donald Trump imposed an additional 25 per cent penalty on most imports from India over its continued purchase of Russian oil, pushing overall duties on some exports to 50 per cent. Among the affected goods are shrimps—a key fisheries export from India to the US.
The United States is demanding zero-duty access for all its agricultural and dairy products in the Indian market. The US executive order cited India’s “direct or indirect” imports of Russian oil as the reason for the move, asserting that higher tariffs were necessary to more effectively address the situation.
Though Modi did not directly reference the United States or the stalled trade negotiations, his remarks served as a defence of India’s stance, adding that the government has recognised farmers’ strength as the foundation of the nation’s progress.
Addressing the M.S. Swaminathan Centenary International Conference in New Delhi, Modi stated in Hindi, “Hamaare liye apane kisanon ka hit sarvochch praathamikata hai. Bharat apne kisanon ke, pashupalakon ke aur machhuaaron bhai behnon ke hiton ke saath kabhi bhi samajhauta nahin karega. Aur, main janata hoon, vyaktigat roop se mujhe bahut badee keemat chukaanee padegee lekin main isake lie taiyaar hoon. Mere desh ke kisanon ke liye, mere desh ke machhuaaron ke liye, mere desh ke pashupaalakon ke lie aaj Bharat taiyaar hai,” The Indian Express reported.
(For us, the interests of our farmers are the highest priority. India will never compromise on the interests of its farmers, livestock rearers, and fisherfolk. And I know that I will personally have to pay a very heavy price for this, but I am ready. Today, India is prepared—for the farmers of my country, for the fisherfolk of my country, and for the livestock rearers of my country.
India’s Ministry of External Affairs Statement
India has made its stance clear, with the Ministry of External Affairs official spokesperson, Randhir Jaiswal, said in a statement on Wednesday evening, “The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” said the statement, in a reference to Europe and China also buying energy from Russia but not facing any consequences. “We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,” the MEA statement said.
