Donald Trump’s claim about India having agreed to cut tariffs prompted the Congress on Saturday to accuse Prime Minister Narendra Modi of weakening India’s global standing, question the alleged compromises made to please the US President, and seek a House statement.
Trump had on Friday asserted that India had under pressure agreed to cut down tariffs on American imports.
“India charges us massive tariffs. Massive. You can’t even sell anything in India. They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done,” he said during a White House media briefing.
The Modi government has so far not made any statement about tariff reductions but commerce minister Piyush Goyal was recently in Washington for negotiations with his US counterpart, Howard Lutnick, on a proposed bilateral trade agreement.
“Has the Government of India taken a decision to cut tariffs under pressure from PM Modi’s close friend, Donald Trump?” Congress spokesperson Pawan Khera said at a media briefing.
“Has Union minister Piyush Goyal, who is in the United States to apparently negotiate a trade deal, buckled under pressure and signed on the dotted line dictated by Howdy Modi’s close compatriot Namaste Trump?”
“Howdy Modi” was a mega event held in Houston in the Prime Minister’s honour during his US visit in September 2019. Modi had reciprocated with a “Namaste Trump” event in Ahmedabad for the visiting US President in late February 2020.
Khera asked whether the Modi government had “surrendered” India’s national and strategic interests and asserted that the Indian economy would be “further crushed by the weight of Modiji’s surrender”.
Jairam Ramesh, Congress general secretary in charge of communications, took to X to demand a clarification from Modi in Parliament when it reassembled on Monday.
“The Commerce Minister Piyush Goyal is in Washington DC to talk trade with the Americans. Meanwhile President Trump says this. What has the Modi Government agreed to?” Ramesh posted.
“Are the interests of Indian farmers and of Indian manufacturing being compromised? The PM must take Parliament into confidence when it resumes on March 10th.”
The Congress’s X handle described Trump’s claim about tariff cuts as an “insult to India” and demanded an all-party meeting to discuss the “serious issue”.
“The US President says that he is exposing India. This is an insult to India. Trump also said that Narendra Modi reduced tariffs because of fear of him. Narendra Modi should tell what compromises were made to please Trump,” the Congress posted on X.
The post said: “This is a very serious matter. The Modi government should give an answer to the country…. Along with this, an all-party meeting should be called to discuss all the issues related to this so that it can be ensured that (the country’s) interest is paramount.”
Khera cited the then Indian governments’ assertive stands during the 1971 Liberation War and the 1974 and 1998 Pokhran nuclear tests as examples of strong leadership in international affairs. He accused the Modi government of undermining the country’s prestige.
“India is a huge market with significant economic strength. Yet, we are surrendering to the US. The PM acts like a lion in India, roaring at us, but turns into a lion made of mud when he visits foreign countries and remains silent,” Khera said.
If Mexico and Canada can negotiate a pause on Washington’s reciprocal tariffs, why can India not do so, he asked.
Misri parries
Foreign secretary Vikram Misri, asked about Trump’s statement during a briefing on Modi’s upcoming visit to Mauritius, refused to comment saying these were ongoing discussions.
He did, however, refer to recent bilateral trade agreements that are based on “tariff liberalisation with several partners”, as well as ongoing discussions with other countries.
The discussion with the US, he said, should be seen in that context, appearing to suggest that any tariff liberalisation relating to American goods — if and when it happens — would not be an exception.
Sources said India had reduced its average applied tariffs significantly for certain countries such as Australia, the UAE, Switzerland and Norway under recent bilateral trade agreements.
Similar negotiations are currently under way with the European Union and the UK, among other partners. The ongoing discussions with the US should be seen in this context, they said.
This appeared a counterpoint to the Congress highlighting how the Union budget for 2025-26 had lowered import duties on high-capacity motorcycles for American brands like Harley-Davidson.
Khera had also flagged the Modi government’s February 13 decision to slash tariffs on US bourbon whisky to 100 per cent from 150 per cent. He had cited the reduction in import duties on American apples, from 50 to 15 per cent, as another instance of the Modi government surrendering to US pressure.
The sources said it was natural for both countries to have their interests and sensitivities, and stressed that discussions had taken place during the first Trump administration about a limited trade deal between the two countries but nothing materialised.