Trump Says “No Trade Talks” With India Until Tariff Dispute is Settled, Modi Says He Won’t Back Down

The US President wants a solution now that there is a new 50% tariff in place. The Indian Prime Minister says the country is willing to “pay a heavy price” to defend its farmers.

August 8, 2025, Washington, D.C.: The commercial relationship between the US and India has reached a tense standstill, with US President Donald Trump taking a clear and firm line. Trump told ANI reporter that in the Oval Office that trade talks with India would be completely off the table until the tariff dispute is fully resolved.

When asked if he thought talks would start up again because of the new, harsh 50% tariff, he said clearly and firmly, “No, not until we get it settled.”

This strong statement comes after the White House’s Executive Order, which added 25 percentage points to the tariffs on Indian exports, bringing the total to an unprecedented 50%. The government has said that “national security and foreign policy concerns” are the reasons, and they have explicitly pointed to India’s continued import of Russian oil. The directive says that these imports are a “strange and extraordinary threat” to the United States, which is why these emergency economic measures are needed.

The first 25% tax went into force on August 7, according to US officials. The second duty will go into effect in 21 days. It will apply to almost all Indian goods that come into U.S. ports, with a few exclusions for things that are already on their way. However, the directive does give the President some leeway to change the sanctions in the future if the geopolitical situation changes or if India takes any retaliatory moves.

India’s Prime Minister Narendra Modi responded with a strong statement of his own around the world. Modi made it plain at the MS Swaminathan Centenary International Conference in New Delhi that India will not be coerced into giving up its most important national objectives.

He continued, “For us, the interest of our farmers is our top priority,” in a forceful and impassioned tone. India will never put the needs of farmers, fisherman, and dairy producers below those of other groups. I know we will have to spend a lot for it, and I’m ready for that. “India is ready for it.”

India has always been against letting international competition into its very sensitive agriculture and dairy sectors, saying that it could hurt the livelihoods of millions of rural people.

The deadlock has now led to a fast and dramatic rise in trade tensions between the two countries. As both leaders refuse to back down, the fight has grown from a disagreement over economic policy to a high-stakes battle of national pride and will.