'I am ready for it. India is ready for it': Modi fires back at Trump's 50% tariff threat

India's Prime Minister Narendra Modi says his country will stand firm against heavy tariffs imposed on them by U.S. President Donald Trump.

Speaking at the MS Swaminathan Centenary International Conference in Delhi on Aug. 7, he also reaffirmed his commitment to protecting the interests of farmers.

"For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it," he said.

"I am ready for it. India is ready for it."

Congress Member of Parliament Shashi Tharoor also responded to the tariffs on Aug. 7, suggesting that India should impose a 50 per cent reciprocal tariff on the U.S. in response.

"If everything becomes 50 per cent more expensive, buyers will also think why should they buy Indian things? If they do this, we should also impose a 50 per cent tariff on American exports," he told reporters.

"We need to ask them, do they not value our relationship? If India doesn't matter to them, they should also not matter to us," he added.

Chairman of India's Mahindra Group Anand Mahindra and chairman of the Mumbai-headquartered RPG Enterprises Harsh Goenka also chimed in, urging the Indian government to fight back against the U.S.'s threats.

"India should use this moment like 1991 crisis to drive bold reforms," Mahindra said, referring to the economic crisis that saw major reforms in India that eventually increased economic activity.

"Raise your tariffs, we'll raise our resolve," Goenka added, "India bows to none."

India's agricultural sector

According to a report by India's Department of Agriculture and Farmers Welfare, agriculture and allied sectors play a key role in the country's economy, accounting for 54.6 per cent of the total workforce.

It also contributes to 17.4 per cent of India's Gross Value Added.

During trade talks, the U.S. had demanded that India open up its agricultural sector, particularly for imports of ethanol for fuel use and genetically modified (GM) maize and soybeans, both major export items from the U.S. to India.

However, India has resisted both imports in a bid to protect their domestic agricultural sector.

Indian Express reported that the resistance has become a sticking point in trade talks, aggravating Trump into imposing the high tariff rate.

50% tariffs

India was slapped with a 50 per cent tariff on Aug. 6, double the amount they were originally given on Jul. 31.

The new levy is among the highest tariff rates imposed by the U.S. on their trade partners to date, with Brazil being the only other country with an equally high rate.

The additional penalty came after weeks of threats by Trump, who said that India's import of Russian oil helped fuel the latter's attacks on Ukraine.

In response, India called the threats "unjustified and unreasonable", saying that the war was what had driven them to import from Russia.

They also declared that they will not cease their purchase of oil from Russia, and counter-accused U.S. of trading with Russia in an equally large capacity.

"India will take all actions necessary to protect its national interests," the Ministry of External Affairs said in an Aug. 6 statement.

The additional levy is set to come into effect on Aug. 27, and will affect all future Indian imports into the U.S.

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Top image via Narendra Modi/Facebook