Kharge slams Modi over Trump tariffs, calls it 'foreign policy disaster'

Kharge warns of a 3.75 lakh crore economic blow from Trump's 50 percent tariffs, claimed Modi is "dithering diplomacy" and failed to protect MSMEs and agriculture.

New Delhi: Congress president Mallikarjun Kharge on Thursday said US President Donald Trump's decision to impose 50 per cent tariff on Indian goods was a foreign policy disaster, and claimed the Modi government is clueless on how to deal with it.

A day after Trump imposed a penalty of another 25 per cent on India for buying Russian oil, Kharge said the decision comes at a time when our diplomacy is "disastrously dithering".

He said Prime Minister Narendra Modi "failed" to negotiate a trade deal with the United States despite several months of negotiations and now Trump is "intimidating and coercing us".

In a post on X, the Congress chief said India's national interest is supreme.

He said any nation that arbitrarily penalises 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".

"From the threats of the 7th fleet to the sanctions of Nuclear tests, we have navigated our relationship with the US with self-respect and dignity. Trump's 50% Tariffs comes at a time when our own diplomacy is disastrously dithering," he claimed.

"Narendra Modi ji, You kept mum when Trump claimed that he brokered the ceasefire. He has claimed at least 30 times and counting. On November 30, 2024, Trump had threatened to impose a 100 percent tariff on BRICS nations. PM Modi was sitting there, visibly smirking, while Trump declared 'BRICS dead'," Kharge alleged.

The Leader of Opposition in the Rajya Sabha said Trump has been planning "reciprocal tariffs" since months now.

"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. Your ministers have been talking about negotiating a trade deal with America for months. Some of them even camped in Washington for several days," he said.

"You failed to negotiate a trade deal with the US. You had more than 6th months. Now Mr. Trump is intimidating and coercing us - but you keep quiet," he claimed.

Noting that India's exports to the US amounts to about Rs 7.51 lakh crore (2024), he said a blanket 50 percent tariff means an economic burden of Rs 3.75 lakh crore.

"Our sectors like MSMEs, Agriculture, Dairy Engineering Goods, Electronic Goods, Gems & Jewellery, Drug Formulations & Biologicals, Petroleum Products and Cotton made clothes shall be hurt the most. Your Govt is clueless how to deal with it. You can't even blame this foreign policy disaster on the 70 years of Congress!!" Kharge said.

Trump on Wednesday slapped an additional 25 per cent tariff on goods coming from India as penalty for New Delhi's continued purchase of Russian oil, a move that is likely to hit sectors such as textiles, marine and leather exports hard.

Trump signed an executive order - Addressing Threats to the US by the Government of the Russian Federation - imposing the additional tariff over an above the 25 per cent levy which comes into effect from August 7.

After this order, the total tariff on Indian goods, barring a small exemption list, will be 50 per cent.