15 hours ago
Last Updated:August 01, 2025, 16:05 IST
“Farmers’ interest is paramount. We won’t come under any pressure, the government is clear,” said top government sources
US President Donald Trump on Thursday announced that a 25% tariff will be imposed on Indian imports starting August 1. (AFP File)
Even as the United States (US) has imposed 25% tariff on Indian exports, there is no question of concessions to the US on agriculture and dairy sector, said top government sources.
“Farmers’ interest is paramount. We won’t come under any pressure, the government is clear," said sources.
“The impact of 25 per cent tariff is marginal and will not be alarming for Indian markets. There is no chance of compromising on farmers, dairy and MSMEs. There is also no chance of allowing import of genetically modified crops," said sources.
US President Donald Trump on Thursday announced that a 25% tariff will be imposed on Indian imports starting August 1, along with an additional unspecified penalty. In a post on his social media platform Truth Social, Donald Trump cited India’s high tariffs, stringent non-monetary trade barriers and continued military and energy ties with Russia as the basis for the move.
“India is our friend, but we have… done relatively little business with them because their tariffs are far too high… and they have the most strenuous and obnoxious non monetary trade barriers of any country," Donald Trump wrote.
He further criticised India’s defense and energy relationship with Russia, saying, “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE- ALL THINGS NOT GOOD!"
Trump concluded, “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST."
In April, Trump had proposed levies of up to 27% on Indian goods though that plan was later paused pending ongoing negotiations. Since then, bilateral discussions resumed, with alternating tones of optimism and caution. Earlier, US Trade Representative Jamieson Greer said, “We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them." Jamieson Greer acknowledged the challenges posed by India’s protectionist trade policies and said that Donald Trump’s trade agenda remains focused on market access for US exports, especially in sensitive sectors.
In 2024-25, the bilateral trade between India and the US stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports). Both Trump and Prime Minister Narendra Modi have publicly stated their ambition to more than double that to $500 billion in the years ahead.
India has already cut tariffs on select US products, such as Bourbon whiskey and motorcycles.
Aman Sharma, Executive Editor - Affairs at CNN-News18, and Bureau Chief at News18 in Delhi, has over two decades of experience in covering the wide spectrum of politics and the Prime Minister’s Office....Read More
Aman Sharma, Executive Editor - Affairs at CNN-News18, and Bureau Chief at News18 in Delhi, has over two decades of experience in covering the wide spectrum of politics and the Prime Minister’s Office....
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August 01, 2025, 16:02 IST
News india No Question Of Concessions To US On Agriculture & Dairy Sector: Top Indian Government Sources
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