In a resolute address on August 7, 2025, Prime Minister Narendra Modi emphasized India's unwavering commitment to safeguarding the interests of its farmers, fishermen, and dairy farmers, despite escalating trade tensions with the United States. Modi's remarks came in response to the U.S. imposing a 25% tariff on Indian goods, a move that was later supplemented by an additional 25% levy on India's purchases of Russian oil, totaling a 50% tariff on Indian exports.

Addressing the MS Swaminathan Centenary International Conference in New Delhi, Modi stated, "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen, and dairy farmers. I know personally, I will have to pay a heavy price for it, but I am ready for it." This statement underscores India's determination to prioritize domestic agricultural interests over external pressures.

The U.S. tariffs were introduced as a punitive measure against India's continued import of Russian oil, a decision that has strained bilateral relations. The Ministry of External Affairs criticized the new trade penalties, calling them "unjustified, unfair, and unreasonable," and highlighted that India's energy imports are based on economic and strategic considerations aimed at ensuring affordable and reliable energy access for its 1.4 billion citizens.

In response to the escalating trade tensions, Prime Minister Modi has called for increased self-reliance, urging citizens to support domestic industries. He emphasized the need for India to become self-sufficient to safeguard its interests, stating, "Being dependent on other countries is a recipe for disaster. We must be self-reliant to safeguard our interests."

The trade dispute has also led to a freeze in negotiations over a bilateral trade agreement between India and the U.S. A key sticking point has been Washington's push for broader access to India's agricultural markets—a demand that New Delhi continues to resist to protect domestic farming communities.

As the situation develops, both nations are likely to engage in further diplomatic discussions to address the trade tensions and seek a resolution that balances their respective economic and strategic interests.