Indian PM vows no compromise on farmers' interests after Trump's tariff hike

Indian Prime Minister Narendra Modi said on Thursday that he will not compromise the interests of the country's farmers even if he has to pay a heavy price, in his first comments after U.S. President Donald Trump's announcement of 50 percent tariffs on Indian goods.

"For us, our farmers' welfare is supreme," Modi said at an event in New Delhi. "India will never compromise on the wellbeing of its farmers, dairy (sector) and fishermen. And I know personally I will have to pay a heavy price for it," he said.

Trump announced an additional 25 percent tariff on Indian goods on Wednesday, raising the total duty to 50 percent – among the highest imposed on any U.S. trading partner. The new tariff, effective August 28, is meant to penalize India for continuing to buy Russian oil, Trump has said.

While Modi did not explicitly mention the U.S. or the collapsed trade talks, his comments marked a clear defense of India's position.

Trade talks between India and the United States broke down after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.

India's Foreign Ministry has called the U.S. decision "extremely unfortunate" and said it would "take all necessary steps to protect its national interests."

"The U.S. tariff hike lacks logic," Dammu Ravi, secretary of economic relations in India's foreign ministry, told reporters. "This is a temporary aberration, a temporary problem that the country will face, but in course of time, we are confident that the world will find solutions."

On July 29, Trump set a 10-day deadline for Russia to agree to a ceasefire with Ukraine. The latest punitive tariff on Indian goods is seen as part of the U.S. pressure campaign targeting Russia.

(With input from agencies)