Cong’s Kharge Terms Fresh US Tariffs On India A ‘Foreign Policy Disaster’

On Thursday, August 7, Congress President Mallikarjun Kharge criticized U.S. President Donald Trump’s decision to impose a staggering 50 percent tariff on Indian goods, labeling it a “foreign policy disaster.” Kharge asserted that the Modi government appears “clueless” on how to effectively respond to this significant economic challenge.

The remarks came just a day after Trump announced an additional 25 percent penalty on India for its continued purchase of Russian oil. Kharge expressed concern that this decision arrives at a time when India’s diplomacy is “disastrously dithering.” He emphasized that Prime Minister Narendra Modi “failed” to secure a trade deal with the United States despite months of negotiations, stating that Trump is now “intimidating and coercing us.”

In a post on social media platform X, Kharge underscored the importance of India’s national interest, asserting, “Any nation that arbitrarily penalizes India for our time-tested policy of strategic autonomy, which is embedded in the ideology of Non-alignment, doesn’t understand the steel frame India is made of.” He said further, “From the threats of the 7th fleet to the sanctions of nuclear tests, we have navigated our relationship with the U.S. with self-respect and dignity.”

Kharge pointed out that Trump’s imposition of a 50 percent tariff comes at a particularly vulnerable moment for Indian diplomacy. He remarked, “Narendra Modi ji, you kept mum when Trump claimed that he brokered the ceasefire. He has claimed (this) at least 30 times and counting.” The Congress leader recalled a specific instance on November 30, 2024, when Trump threatened to impose a 100 percent tariff on BRICS nations, noting, “PM Modi was sitting there, visibly smirking, while Trump declared ‘BRICS is dead.'”

As the Leader of the Opposition in the Rajya Sabha, Kharge highlighted that Trump has been planning “reciprocal tariffs” for months. He stated, “We all knew about it. You did nothing in the Union Budget to soften the blow on our key sectors such as agriculture, MSMEs, and various industries.” He criticized government ministers for their prolonged discussions about negotiating a trade deal with the U.S., mentioning that some even spent several days in Washington.

“You failed to negotiate a trade deal with the U.S. You had more than six months. Now Mr. Trump is intimidating and coercing us—but you keep quiet,” Kharge asserted. He pointed out that India’s exports to the U.S. amount to approximately Rs 7.51 lakh crore in 2024, and a blanket 50 percent tariff would impose an economic burden of Rs 3.75 lakh crore on the country.

Kharge warned that sectors such as MSMEs, agriculture, dairy, engineering goods, electronic goods, gems and jewelry, drug formulations and biologicals, petroleum products, and cotton-made clothes would be the hardest hit. He said, “Your government is clueless on how to deal with it. You can’t even blame this foreign policy disaster on the 70 years of Congress!”

In a related development, Trump signed an executive order on Wednesday titled “Addressing Threats to the U.S. by the Government of the Russian Federation,” which imposed the additional 25 percent tariff on Indian goods. This order, effective from August 7, means that the total tariff on Indian goods, excluding a small exemption list, will now reach 50 percent. The implications of these tariffs are expected to severely impact key sectors, including textiles, marine, and leather exports, raising concerns about the broader economic ramifications for India.