Kharge Accuses Modi Govt of ‘Capitulation’ Amid US Tariff Threat

NEW DELHI, Sep 16 : Congress President and Leader of Opposition in the Rajya Sabha Mallikarjun Kharge on Wednesday stepped up his criticism of Prime Minister Narendra Modi over escalating India-US trade tensions, alleging that the government had repeatedly yielded to pressure from Washington.

In a post on social media platform X, Mr Kharge targeted the Prime Minister over the threat of further US tariffs on Indian goods, alleging that the measures reflected failures in the government's foreign and trade policies.

“Your dear friend ‘Abki Baar Trump Sarkar’ dictates, you capitulate and 140 Cr Indians are left to bear the consequences!” Mr Kharge said.

He alleged that the threat of tariffs of up to 100 per cent on Indian goods could expose several sectors to a major shock, including pharmaceuticals, textiles, engineering goods, chemicals, auto components, gems and jewellery, electronics and technology.

“First came 25% tariffs, then 50%, and now the threat of 100%,” he said.

Mr Kharge also criticised the India-US trade framework announced earlier this year, claiming that it would provide greater access to American agricultural products in the Indian market and could adversely affect domestic farmers. He further alleged that the framework would effectively require India to purchase $500 billion worth of American goods over five years.

The government, however, has defended the framework as an effort to expand Indian exports and secure greater access to the US market, while maintaining that sensitive agricultural sectors, including dairy, meat, poultry and cereals, have been protected.

Mr Kharge also linked the trade dispute to the government's recent decision on Merchant Discount Rate (MDR) for specified higher-value merchant transactions through the Unified Payments Interface (UPI).

Under the new arrangement, a 0.4 per cent MDR will apply from October 15 to specified merchant UPI transactions above Rs 2,000, while person-to-person transactions will continue to remain free. The government has said that the vast majority of merchant transactions will remain unaffected.

“Yesterday's surrender on the MDR on UPI is another stark example of your government's meekness!” Mr Kharge said.

He further alleged that pressure from Washington was extending beyond tariffs and trade negotiations to immigration, visas and digital payments.

“From tariffs and trade to H1B1 immigration, visas and digital payments, the pressure from Washington keeps mounting, and you, ‘Howdy Modi ji’ keeps surrendering!” he said.

Mr Kharge's remarks come amid continuing uncertainty in India-US trade relations, with market access and tariff issues remaining key areas of negotiation. The Indian government has maintained that it is engaging with Washington to safeguard India's economic interests while seeking improved market access for Indian exporters.

The exchange has added a political dimension to the debate over India's response to US tariff measures and its broader economic relationship with Washington.