Modi vows no bargain on farmers' interests after tariff

Indian Prime Minister Narendra Modi said on Thursday 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 US President Donald Trump's salvo of a 508 tariff on Indian goods.

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"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 258 tariff on Indian goods on Wednesday, raising the total duty to 508 - among the highest imposed on any U.S. trading partner.

The new tariff, effective August 28, is meant to penalise 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 defence 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 US decision “extremely unfortunate” and said it would “take all necessary steps to protect its national interests.”

The US has yet to impose similar tariffs for China, the biggest buyer of Russian oil. Experts say China’s dominance in rare earth minerals gives it leverage that India lacks.