India Reassesses Trade Offers as 50% U.S. Tariffs Loom, Safeguards Agriculture and Dairy
With U.S. President Donald Trump set to impose steep 50% tariffs on Indian goods, including an additional 25% levy tied to India’s Russian oil imports, New Delhi is recalibrating its trade strategy as a high-stakes deadline approaches.
Indian authorities remain resolute in protecting sensitive sectors such as agriculture and dairy—considered "non-negotiable red lines" in any trade bargain. Prime Minister Narendra Modi reaffirmed his commitment to farmers and dairy producers, even in the face of significant political pressure.
Meanwhile, economic ministries are conducting a comprehensive review of other sectors to explore potential concessions. The goal? To make strategic compromises that don’t jeopardize domestic priorities.
To cushion the blow of tariff-induced disruptions, the government has unveiled a three-pronged exporter relief initiative:
- Tailored export promotion schemes to bolster affected industries.
- Diversion of goods to alternate international markets.
- Channeling surplus output toward domestic demand to maintain production continuity. Though trade negotiators from the U.S. are scheduled to visit India between August 25–30, President Trump has signaled a hardline stance—stating that no further talks will occur until tariff issues are resolved.
