'India will never compromise': Modi leads backlash to punitive 50% levy

India's prime minister, Narendra Modi, has said he is ready to "pay a huge price" for resisting US attempts to dictate trade policies, as India took a defiant position on Donald Trump's punitive export tariffs.

- Hannah Ellis-Petersen

In an executive order signed on Wednesday, the US president slapped an additional 25% tariff on India, in a move he described as punishment for continuing to buy large quantities of Russian oil and "fuelling Russia's war machine". It came on top of a 25% tariff for Indian exports already announced by the US president.

India's foreign ministry hit back almost instantly, calling the additional tariff "unfair, unjustified and unreasonable" and accusing the US of double standards, as other countries also importing Russian oil have not faced the same punitive action.

In a speech on Wednesday night, which did not directly mention Trump or the new tariffs, Modi appeared defiant as he addressed one of the biggest sticking points in India's continuing trade negotiations with the US over tariffs.

According to Indian officials, the US has been pushing India to allow imports of genetically modified (GM) American crops into the country, and for duty-free imports of US farm and dairy products. Protecting India's hundreds of millions of farmers is seen as a highly sensitive area for the Modi government. Indian officials said these areas were "non-negotiable on principle" and were firm that "we can't import GM".