Washington, D.C. – U.S. President Donald Trump has ruled out any trade negotiations with India until a growing tariff dispute is resolved, marking a sharp escalation in economic tensions between the two nations.
Speaking to reporters in the Oval Office, Trump was asked whether recent developments meant trade talks with India would resume. His response was blunt:
“No, not until we get it resolved.”
The remarks came just hours after the White House issued an Executive Order on Wednesday, imposing an additional 25% tariff on Indian imports—bringing the total duty on many Indian goods to 50%. The order cites concerns over national security and foreign policy, specifically India’s ongoing oil trade with Russia, as justification for the steep increase.
According to U.S. officials, the initial 25% tariff came into effect on August 7, with the second tranche to be enforced 21 days later. The new tariff regime will apply to all Indian goods entering U.S. ports, except for shipments already in transit and select exempt categories.
The Executive Order also gives the president authority to revise the measures in response to geopolitical shifts or retaliatory actions by India or other affected countries.
Modi Responds: “India Will Not Compromise”
Indian Prime Minister Narendra Modi responded defiantly during a speech at the MS Swaminathan Centenary International Conference in New Delhi. Emphasizing India’s unwillingness to yield to economic pressure, Modi said:
“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 we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”
India has long resisted opening its agriculture and dairy sectors to foreign competition, citing the threat to the livelihoods of millions of rural families.
The tariff standoff signals a deepening rift between the two major economies, with both countries now firmly entrenched in conflicting economic and strategic positions.
While the Trump administration frames the move as part of a broader national security agenda, India views it as an unjustified economic attack, particularly given its energy security needs and longstanding reluctance to alter trade protections in politically sensitive sectors.
The fallout could have lasting consequences for bilateral relations and global supply chains, especially as both nations gear up for a more competitive geopolitical landscape.