India's Prime Minister vows no compromise on agriculture as US tariff war escalates

A day after United States President Donald Trump announced a 50 per cent tariff on Indian goods, the country’s prime minister vowed he would not compromise the agricultural sector.

India already faced a 25 per cent US levy on its exports after failing to reach a to reach a trade deal with Washington before Trump’s 1 August deadline.

Speaking at an event in New Delhi, India’s Prime Minister Narendra Modi on Thursday said he would not compromise the interests of his country's farmers even if he has to pay a heavy personal price.

"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.

“For us, the interests of our farmers is our top priority. India will never compromise on the wellbeing of its farmers, livestock owners, and fishermen, our brothers and sisters,” he said.

One of the main sticking blocks for New Delhi in trade negotiations with Washington has been its demand to access India's vast agricultural and dairy market.

India and the US have had five rounds of negotiations on a bilateral trade agreement, but have not been able to clinch one so far.

Trump has said that the new tariff, which comes into effect on 28 August, is meant to penalise India for continuing to buy Russian oil.

The escalation in the standoff between the 2 countries now sees India at the top of the list with Brazil, facing the highest Trump levies.

Policy experts suggest the dip in rapport between the two leader puts a strategic bilateral relationship built over decades at risk.