The Trump administration issued a draft notice on Monday, implementing plans to implement 50% tariffs on Indian goods. This has only deepened tensions between New Delhi and Washington, as US President Donald Trump aims to penalise India for continuing to purchase crude oil from Russia. And yet again, Prime Minister Narendra Modi has given a stern response, asserting that "India won't compromise on the interests of its farmers, domestic producers, and small-scale industries."
Calling it necessary to "pressurise Russian President Vladimir Putin to initiate peace talks and end war with Ukraine", the White House had announced to double its tariffs on Indian goods from 25% to 50%.
The threat looms over as Donald Trump is trying hard to build economic pressure on Russia, and targeting those countries that he cites "discriminate against US Technology firms".
Trump has even defended tariffs as a "means to stop wars", more than a mere trade tool. Vice President JD Vance also highlighted that imposing secondary sanctions on India was a part of a broader framework to weaken the oil economy of Moscow.
According to a draft notice issued by the US Department of Homeland Security, the higher levies would apply to Indian products "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025."
While addressing an event after launching multiple projects in Ahmedabad on Tuesday, PM Modi reiterated that India will withstand external pressure fiercely, highlighting the promotion of Swadeshi goods.
He said, "For Modi, the interests of farmers, cattle rearers, and small-scale industries are paramount. Pressure on us may increase, but we will bear it all."
He took a dig at Congress for increasing India's dependency on imports to facilitate "scams." PM Modi called to draw Mahatma Gandhi's self-reliance and Lord Krishna's strength. He said, "India is empowered by walking on the path of Sudarshan Chakradhari Mohan Lord Shri Krishna and Charkhadhari Mohan Mahatma Gandhi."
Donald Trump has widened his threats to other countries, warning European nations and others that have introduced digital service taxes and regulations on tech companies, even though he didn't take any names. He might be referring to the European Union's Digital Markets Act and the UK's Digital Tax.
Posting on TruthSocial, the US President wrote, "Digital taxes, Digital service legislation, and Digital markets regulations are all designed to harm or discriminate against American technology."
Adding, "America and American technology companies are neither the 'piggy bank' nor the 'doormat' of the world any longer." He warned of "additional tariffs" and export restrictions on US chips and technology until these measures were scrapped.
Earlier in June, Trump had called off trade talks with Canada, against the latter's planned digital service tax on US tech firms. Ever since his second presidential term, the Trump administration has imposed tariffs on several countries, be it competitors or close allies, with varied rates.
Defending his recent trade policy, Donald Trump claimed that tariffs could help him avert several global conflicts during his earlier term. He stated, "Out of the 7 wars I stopped, 4 were because I had tariffs and trade. We are taking trillions of dollars in tariffs and stopping wars."
Vice President Vance had echoed for applying economic leverage against Russia, "Maybe we will apply additional pressure, or maybe we feel like we are making progress, and we will dial that pressure back. US still has a lot of cards to play."
Meanwhile, India has backed its oil imports from Russia, saying that it is vital for its economic stability. Further, it is stepping to outreach Russia and China, signalling that no external power can dictate its decisions.
