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India reportedly halts the Rs 31,500 Cr P-8I defense deal amid escalating trade tensions and new 50% US duties on Indian goods. Taking a bold position against mounting trade tensions with America, Prime Minister Narendra Modi on Thursday, August 7, 2025, categorically stated that India's farmers' interests are always supreme and will not be sacrificed at any cost, even if it means a "heavy price." This comes against the backdrop of the Trump administration hike in tariffs on Indian products to 50% in total by doubling them.
Goa Minister Vishwajit Rane Echoes PM Modi's 'India First' Stance On Tariff Issue
India reportedly halts the Rs 31,500 Cr P-8I defense deal amid escalating trade tensions and new 50% US duties on Indian goods.
Taking a bold position against mounting trade tensions with America, Prime Minister Narendra Modi on Thursday, August 7, 2025, categorically stated that India's farmers' interests are always supreme and will not be sacrificed at any cost, even if it means a "heavy price." This comes against the backdrop of the Trump administration hike in tariffs on Indian products to 50% in total by doubling them.
Addressing the MS Swaminathan Centenary International Conference, PM Modi said, "For us, farmers' interest is our first priority. India will never settle at the cost of farmers, fishermen and milkmen. I know we will have to shell out a heavy price for this and I am prepared for it. India is prepared for it."
Goa Minister Vishwajit Rane reiterated the Prime Minister's strong commitment, reiterating an "India First" policy. "For Hon'ble Prime Minister Modi Ji, it's always - Farmers, Soldiers, and India First. No compromise ever, this is the New India," Rane wrote on Twitter. He further said, "'I will have to pay a heavy price for this, but I am ready.' These are not mere words, these speak volumes of PM Modi's sincere commitment towards India's farmers. Goa stands strongly with Hon'ble Prime Minister Modi Ji on this resolve."
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For Hon'ble Prime Minister Modi Ji , it's always - Farmers, Soldiers, and India First.
No compromise ever, this is the New India.
"I will have to pay a heavy price for this, but I am ready." These are not just words, they reflect PM Modi's true commitment towards India's… pic.twitter.com/mHd8k5I7Z2 — Vishwajit Rane (@visrane) August 7, 2025
The higher tariffs imposed by the US administration are a direct result of India's continued import of Russian oil. On Wednesday, US President Donald Trump signed an Executive Order imposing a further 25% tariff on Indian imports. The new charge, effective 21 days from the commencement date of the first 25% tariff (which started today, August 7), will make the overall tariff on the majority of Indian products 50%. The White House invoked national security and foreign policy interests, claiming that India's Russian oil purchases present an "unusual and extraordinary threat" to the U.S.
India, though, has all along asserted that its oil imports are market-driven and are necessary to assure the energy security of its 1.4 billion citizens. New Delhi has also underlined the alleged double standards, observing that America and European nations themselves continue to import substantial amounts of oil, gas, and fertilizers from Russia.
According to reports, with all this tariff wars going on, India has apparently put a brakes on a much-needed ₹31,500 crore (more or less USD 3.78 billion) defense contract for six P-8I Poseidon maritime surveillance aircraft deal with US aircraft manufacturer Boeing. The move is seen as the strategy amid growing trade pressures.
The economists are evaluating the likely effect of these increased tariffs on India's economy. Sonal Badhan, a Bank of Baroda Economics Specialist, informed ANI that the extra 25% tariff would dent India's GDP growth in FY26 by some estimated 0.2% to 0.4%. While noting the short-term effect, she indicated that negotiations in the subsequent months could result in lowering of these rates.
The most likely sectors to be impacted by the higher tariffs are garments, precious stones, electronics, pharmaceuticals, automobile parts, and Micro, Small, and Medium Enterprises (MSMEs). The Executive Order does permit adjustments according to shifting circumstances, such as possible retaliatory actions of other nations or actions on the part of Russia or India to confront the "national emergency." Certain items, however, such as certain mineral materials, metallurgical ores, fuels, industrial chemicals, and pharmaceutical precursors, have been exempted from the added tariff under Annex II of Executive Order 14257.
Source: ZeeNews
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