India vowed on Thursday to protect its labour-intensive agriculture sector, a central sticking point in bogged-down trade talks with the U.S., as Washington threatened 25% tariffs, triggering outrage from the opposition and a slump in the rupee.

India’s prime minister has made a big effort to build closer ties using his rapport with the U.S. president, but critics say he is getting little in return.

While the shock is real, many observers still believe the situation is negotiable. Past trade skirmishes between India and the US have ended in compromise, and sectoral carve-outs, especially for sectors like pharmaceuticals,