US tariffs on India: Kharge says Modi govt’s foreign policy will cost jobs
Textile sector could see up to 500,000 direct and indirect jobs at risk, while 150,000–200,000 jobs in gems and jewellery may be impacted, says Kharge
Congress president Mallikarjun Kharge on Wednesday, 27 August, criticised the Modi government following the US’s additional tariffs on Indian goods, calling them a result of “superficial” foreign policy that could lead to significant job losses.
US President Donald Trump imposed an additional 25 per cent tariff on Indian goods effective Wednesday, bringing total levies to 50 per cent. The tariffs target India’s purchases of Russian oil and defense equipment.
Taking to X, Kharge said, “Narendra Modi ji, your dear friend ‘Abki Baar, Trump Sarkar’ has imposed 50 per cent tariffs on India starting today. We will lose an estimated ₹2.17 lakh crore across 10 sectors alone.”
He highlighted the impact on farmers, particularly cotton growers, claiming the government had done little to mitigate the blow to their livelihoods. “You had said you are ready to pay any personal price to protect them, but no action has been taken,” Kharge added.
Kharge cited a Global Trade Research Initiative (GTRI) report suggesting almost 1 per cent of India’s GDP could be affected, with China potentially benefiting. Key export sectors, including MSMEs, textiles, gems, and jewellery, could face massive job losses. The textile sector alone could see up to 500,000 direct and indirect jobs at risk, while 150,000–200,000 jobs in gems and jewellery may be impacted.
The Congress leader also pointed out that around 100,000 diamond cutting and polishing workers in Gujarat’s Saurashtra region have already lost their jobs since April, following a previous 10 per cent US tariff. Shrimp farmers, numbering half a million directly and 2.5 million indirectly, are also at grave risk.
“Indian national interest is supreme. A robust foreign policy requires substance, yet superficial engagements — smiles, hugs, selfies — have hurt our interests. The government failed to secure a trade deal and is now failing to protect our country,” Kharge alleged.
The US Department of Homeland Security, in a draft order published Monday, confirmed that the increased tariffs would apply to Indian products entering or withdrawn from warehouses for consumption on or after 12:01 am EDT on 27 August 2025. The tariffs follow earlier 25 per cent duties announced on 7 August on Indian goods and goods from around 70 other nations. Trump allowed a 21-day window for negotiations before doubling tariffs on Indian goods linked to Russian crude purchases.
With PTI inputs