Indian Prime Minister Narendra Modi signalled in a speech that his government would not bend under pressure from the US as tariffs on Indian goods are set to take effect. Speaking in Ahmedabad, Modi told farmers, shopkeepers and small entrepreneurs that their interests would remain his priority despite mounting global trade tensions, according to a press release by India’s Press Information Bureau.

The remarks came hours before the US administration of President Donald Trump was due to impose higher duties on a range of Indian exports after withdrawing preferential trade benefits and imposing 25% tariffs as reciprocal tariffs and another 25% tariffs on top of that for buying and profiteering from refining and reselling Russian hydrocarbons.

Washington had argued that India did not provide fair access to American companies, as well as enabling Russia’s war in Ukraine by not only funding its state coffers but also not caring for the lives lost on the Ukrainian side. In an August 20 2025 press briefing, US White House Press Secretary Karoline Leavitt referred to the measures as sanctions on India which was not only received poorly in India but likely strengthened the hand of anti-US voices in New Delhi’s policy circles.

While New Delhi and Washington were reportedly close to concluding a free trade pact or at least a trade deal of some magnitude in February 2025, the following months have seen all that progress being virtually lost and bilateral relations stall if not regress altogether. 

India’s Ministry of Commerce and Industry has been preparing a set of retaliatory measures targeting US farm products and steel items. Officials indicated that the counter-tariffs would cover about INR16.7bn ($240mn) worth of imports.

India had earlier delayed the implementation of these duties while talks were ongoing, but the collapse of discussions prompted New Delhi to reconsider. Modi’s comments stressed resilience, saying his government would continue to strengthen its ability to withstand external shocks. He underlined that the administration would not allow harm to small businesses, cultivators or livestock rearers, even if outside pressure intensified.

The dispute follows India’s rapid expansion as one of the fastest-growing major economies, which has sharpened trade frictions with partners. Analysts suggest New Delhi’s firm line reflects both domestic political commitments and its intent to be treated on equal footing in global trade negotiations.