'Tariffs' has become THE BUZZWORD of the year so far, with US President Donald Trump using it without hesitation since the onset of his second term and even before.

Advertisment

India’s reputation as the world’s “tariff king” isn’t going away anytime soon. With duties like 50% on apples, corn, and motorcycles, and 100% on coffee, raisins, and walnuts, it’s no wonder the US President gave India an honourable mention in so many of his speeches about tariffs. But behind these steep import taxes lies a bigger story: One of protection, politics, and a push for self-reliance.

Also read: Trump’s reciprocal tariffs hit ‘tariff king’ India: Could they cost PM Modi his next term?

Not just taxes: It’s a safety net

Advertisment

India’s love for tariffs isn’t just about blocking foreign goods; it’s about shielding its own. For decades, the country has used high import duties to protect its local industries, especially agriculture and manufacturing, from being crushed by cheaper international competition.

Take dairy, for instance. With tariffs reaching up to 60%, Indian farmers get a fighting chance against big global dairy exporters. Companies like Amul argue that slashing duties would destroy livelihoods. The same logic applies to other farm goods like meat and processed foods. Drop the tariffs, and the market could be flooded with cut-price imports, leaving small-scale producers in the dust.

Also read: Vietnam first to fall in face of Trump tariffs. Will other countries follow?

Advertisment

Cash cow for the government

Tariffs also keep India’s treasury full. In the 2026 financial year alone, the government expects to rake in ₹2,40,000 crore from customs duties. Lower tariffs might win a few friends abroad, but they’d also punch a hole in public revenue, and that’s a tough sell at home.

What’s more, if India cuts tariffs for one country, trade rules often mean others get the same deal. That’s a chain reaction the government isn’t in a hurry to trigger.

Also read: Vietnam first to fall in face of Trump tariffs. Will other countries follow?

Aatmanirbhar Bharat: Self-reliance over global deals

Then there’s Prime Minister Narendra Modi’s flagship vision of Aatmanirbhar Bharat, or Self-Reliant India. Under this plan, tariffs are being used as a tool to boost local manufacturing, particularly in sectors like electronics and solar energy.

For Indian businesses, this strategy is a win. Fewer global players at the table means less competition. It’s a protectionist playbook, yes, but one that aligns with both political messaging and economic goals.

So, why won’t India budge?

To outsiders, India’s high tariffs might seem like a barrier to free trade. But at home, they’re seen as requirement for protecting jobs, feeding government revenue, and supporting an ambitious domestic agenda.

Also read: 'Pentagon will pay': Did Trump shoot US weapon production in foot with reciprocal tariffs? F-35, NATO partnerships at risk