Page 4 - The Indian EYE 081525

COVER STORY AUGUST 08, 2025 | The Indian Eye 4

TRUMP’S TARIFF GAMBLE

MODI ISN’T

BLINKING

By doubling tariffs on Indian goods to 50%, Donald Trump is gambling that economic pressure will
force New Delhi to curb Russian oil imports — but Narendra Modi is standing his ground, backed by

farmers, a chorus of domestic support, and even some opposition voices critical of Washington’s move

OUR BUREAU
New Delhi | Washington, DC

hen Donald Trump signed
an executive order on Au-
Wgust 6 imposing an addition-
al 25 percentage points in tariffs on
Indian goods — taking the total levy
to 50% — it was more than a trade
measure. It was a calculated gam-
ble aimed at reshaping U.S.–India
relations under intense geopolitical
strain. Washington’s stated concern:
India’s continued imports of Russian
oil, which the order claims present an
“unusual and extraordinary threat” to
the United States.
The timing was designed to sting.
The first 25% tariff had only just tak-
en effect on August 7; the second
tranche is set to follow within 21 days,
covering all Indian goods entering
U.S. ports, with only narrow exemp-
tions. Trump’s Oval Office comment
was blunt: there would be no trade
talks “until we get it resolved.”
For India’s Prime Minister Nar-
endra Modi, this was no time to re-
treat. Standing before an audience at
the MS Swaminathan Centenary In-
ternational Conference, he issued a Prime Minister Narendra Modi addresses the gathering at the inauguration of Kartavya Bhavan 3,
defiant message that was as much for at Kartavya Path in New Delhi on Wednesday. (DPR PMO/ANI Photo)
Washington as for his domestic base:
“India will never compromise on the in the political reality of rural In- than, voices in local media praised shikant Dubey called on “140 crore
interests of farmers, fishermen, and dia, where millions depend on these the Prime Minister’s stand, pointing Indians” to back Modi in the face of
dairy farmers. I know we will have sectors. Trump’s tariffs, by targeting to schemes like PM-Kisan Sam- Trump’s “attack” and portrayed the
to pay a heavy price for it, and I am sensitive export categories, seem de- man Nidhi and improved crop pric- moment as a test of national unity.
ready for it. India is ready for it.” signed to test Modi’s resolve. Instead, es. “What PM Modi has done for By reframing the dispute as a patri-
The statement tapped direct- they appear to have fortified it. the farmers, no one could ever do,” otic duty, the BJP has effectively in-
ly into a deep reservoir of domestic Domestic Rally Around Modi one farmer told ANI. “We will keep sulated Modi from domestic political
sentiment. Modi’s refusal to open Across India, farmers respond- standing with him.” fallout — at least in the short term.
agriculture and dairy markets to U.S. ed with visible solidarity. From Ut- The Bharatiya Janata Party’s
competition has long been rooted tar Pradesh to Haryana to Rajas- own MPs amplified the message. Ni- Continued on next page... >>

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