Congress Criticizes Govt's Foreign Policy Amid US Tariff Hike

New Delhi, Aug 27 (PTI) — The Congress has criticized the Indian government's foreign policy following the implementation of additional tariffs imposed by the US on Indian goods on Wednesday. Congress President Mallikarjun Kharge attributed these tariffs to the government's "superficial" foreign policy, warning of significant job losses as a consequence. US President Donald Trump has implemented an additional 25% tariff on Indian products, effective from Wednesday.

In a social media post, Kharge remarked, "Narendra Modi ji, your dear friend 'Abki Baar, Trump Sarkar' has imposed 50% tariffs on India starting today. We expect an estimated loss of Rs 2.17 lakh crore due to this increase, impacting 10 sectors significantly." He expressed concern over the adverse effect on Indian farmers, particularly those involved in cotton farming, remarking on the lack of action taken to protect their livelihoods despite previous assurances from the government. According to Kharge, the Global Trade Research Initiative (GTRI) indicates a potential impact on nearly 1% of India's GDP, with China standing to benefit from the situation.

The Congress leader highlighted the potential job losses across various sectors. He warned that the export-oriented sectors, in particular, would face challenges, with the textile export sector being at risk of losing around 500,000 jobs. Similarly, the gems and jewellery sector might see 150,000 to 200,000 jobs threatened if the tariffs persist, he added. Kharge pointed to the ongoing difficulties faced by workers in the diamond cutting and polishing industry, noting that approximately 100,000 employees in the Saurashtra region have been affected since the US imposed a 10% base tariff in April. He further claimed that the livelihoods of half-a-million shrimp farmers, alongside 2.5 million in associated sectors, are under severe threat.

Kharge criticized the government's approach to foreign policy, describing it as lacking depth and substance, and accused it of failing to secure favorable trade agreements. "Indian national interest is supreme. A robust foreign policy requires substance and deft action, but the superficial engagements—smiles, hugs, and selfies—have harmed our interests. You have failed to secure a trade deal and now fail to protect our country," he stated.

These developments come as the US imposes a 25% tariff related to India's purchase of Russian oil, effective from Wednesday, increasing the total tariffs to 50%. The US Department of Homeland Security released a draft order on Monday indicating that the increased levies will impact Indian products consumed after 12:01 am eastern daylight time on August 27, 2025. Trump announced reciprocal tariffs of 25% on Indian products effective from August 7, coinciding with tariffs imposed on approximately 70 other countries. On the same day, Trump also announced a doubling of tariffs to 50% on Indian goods in response to India's procurement of Russian crude oil, giving a 21-day window for negotiations.

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