India shrugs off Trump’s 25% Tariffs: Agriculture Remains Untouchable in US Trade Talks

Donald Trump’s 25% tariffs on Indian goods? India’s barely batting an eye. New data reveals that over half of Indian exports to the US remain unaffected, thanks to pre-existing exemptions. Total bilateral trade between the two economic giants reached a staggering $131.8 billion in fiscal year 2024-25, a testament to the enduring economic relationship despite the trade friction.

However, the seemingly minimal impact masks a firm stance from India on key agricultural issues. India has made it unequivocally clear that concessions on tariffs for agricultural products, dairy, and genetically modified (GM) foods are completely off the table. This unwavering position, driven by deeply rooted religious and cultural sentiments, presents a significant hurdle in ongoing trade negotiations.

The resilience of the Indian economy in the face of these tariffs underscores the country’s diversified export portfolio. While the exact long-term consequences remain to be seen, the initial reaction suggests a relatively robust ability to weather the storm. The sticking point, however, remains the deeply held beliefs regarding agricultural trade, indicating a complex negotiation process ahead for both nations.