'18% tariff vs 0%': Rahul Gandhi slams Centre over India-US trade deal, says cotton farmers, textile sector will be affected

Congress leader Rahul Gandhi on Saturday accused Prime Minister Narendra Modi and his government of "misleading" the people of the country over tariff provisions in the interim trade deal between India and the US.  

The Leader of Opposition in Lok Sabha alleged that the deal will severely affect cotton farmers and textile exporters.

Taking to X, Gandhi said that Indian garments attract 18 per cent tariff in the United States, while Bangladesh is being given a zero per cent tariff benefit on garment exports on the condition that it imports American cotton.

He further said that importing American cotton would harm domestic cotton farmers, while not importing it would harm the textile industry.

He also claimed that Bangladesh could possibly reduce or halt cotton import from India, further harming the farmers.

"18% Tariff vs 0% -- Let me explain how the expert liar Prime Minister and his cabinet are spreading confusion on this issue. And how they are cheating India's cotton farmers and textile exporters through the India-US trade deal. Bangladesh is being given 0% tariff benefit on garment exports to the US -- the only condition is that they import American cotton. After the announcement of 18% tariff on Indian garments, when I raised the question in Parliament about the special concession being given to Bangladesh, the reply from a minister of the Modi government was: "If we also want the same benefit, we will have to import cotton from America." Why was this fact hidden from the country till now?"

He also claimed that the agreement will push millions into unemployment and economic distress and criticised the government's negotiations saying
He also criticised the government's handling of the negotiations, stating that a deal in the national interest should have safeguarded both cotton farmers and textile exporters.

"And what kind of policy is this? Is this really any kind of choice -- or is it a trap designed to push us into a "well in front, ditch behind" situation? If we import American cotton, our own farmers will be ruined. If we don't import it, our textile industry will lag behind and get destroyed. And now Bangladesh is also giving signals that it may reduce or even stop importing cotton from India," the post read.

"The textile industry and cotton farming are the backbone of livelihood in India. Crores of people's daily bread depend on these very sectors. Attacking these sectors means pushing millions of families into the pit of unemployment and economic crisis. A visionary government that thinks in the national interest would have negotiated a deal that protects and ensures the prosperity of both cotton farmers and textile exporters. But exactly the opposite has happened -- Narendra "Surrender" Modi and his ministers have made an agreement that is likely to inflict deep damage on both sectors," Gandhi added.

India and the US announced an interim trade agreement last week. In a joint statement, India said that the deal aimed at a framework for a reciprocal and mutually beneficial trade pact between the two countries.

The deal will eliminate or reduce tariffs on US industrial goods and a wide range of food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products in the Indian market.

Meanwhile, the US will apply a reciprocal tariff of 18 per cent on selected Indian goods, including textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home decor, artisanal products, and certain machinery.

Once the agreement is signed, US tariffs on items such as generic pharmaceuticals, gems and diamonds, and aircraft parts will be removed.