As the 50 per cent tariff announced by US President Donald Trump on Indian goods came into effect on Wednesday, the Opposition Congress hit out at the Narendra Modi government for its “failure” in the foreign policy.
Congress President Mallikarjun Kharge said India will lose an estimated ₹2.17 lakh crore across 10 sectors alone as the first impact of this tariff.
“Our farmers, especially cotton farmers, are badly hit. You had said you are ready to pay any ‘personal price’ to protect them, but you have done absolutely nothing to soften the blow and protect their livelihoods,” Kharge said in a post on X.
.@narendramodi ji,
— Mallikarjun Kharge (@kharge) August 27, 2025
Your dear friend "Abki Baar, Trump Sarkar" has imposed 50% Tariffs on India, starting today.
We will lose an estimated ₹2.17 Lakh Crore as the first jolt to this Tariff, across 10 sectors alone.
Our Farmers, especially Cotton farmers, are badly hit. You… pic.twitter.com/e8rADq4hhr
He cited a Global Trade Research Initiative (GTRI) report to claim that almost 1 per cent of India’s GDP could be impacted by the new tariff.
The Congress leader noted that several important export-oriented sectors, including MSMEs, will experience massive job losses. Giving a snapshot, Kharge said the textile export sector is facing potential job losses of about 500,000, including both direct and indirect employment.
“In the gems and jewellery sector, 150,000 to 200,000 jobs could be at risk if the tariffs continue. Close to 1,00,000 workers involved in diamond cutting and polishing across the Saurashtra region have already lost their jobs since April, when the 10 per cent base US tariff was put in place,” his post read.
Kharge also alleged that the livelihoods of half a million shrimp farmers are directly at risk, and those of 2.5 million are indirectly at risk.
“Indian national interest is supreme. A robust foreign policy needs substance and deft, but your superficial foreign policy engagements - smiles, hugs and selfies have hurt our interests,” said the Congress chief.
Another party leader, Jairam Ramesh, alleged that India’s foreign policy has faltered under Prime Minister Modi’s leadership, particularly in its dealings with the US.
The Trump double tariff has come into effect. This will undoubtedly hit our labour-intensive exports to the US - especially textiles, gems & jewellery, leather, marine products, and engineering as well.
— Jairam Ramesh (@Jairam_Ramesh) August 27, 2025
Over the last twenty four hours, the US Commerce Secretary has also spoken…
He noted that despite Modi's efforts to cultivate a friendship with Trump, including the "Howdy Modi" event, the US President still imposed significant tariffs on Indian imports.
“The Trump double tariff has come into effect. This will undoubtedly hit our labour-intensive exports to the US - especially textiles, gems & jewellery, leather, marine products, and engineering as well,” he said.
