Congress president Mallikarjun Kharge on Wednesday launched a sharp attack on Prime Minister Narendra Modi after US President Donald Trump imposed a 50% tariff on Indian imports, accusing the government of failing to protect the country’s economic interests.
Kharge said that the move by Modi’s “dear friend” would result in India losing an estimated ₹2.17 lakh crore across 10 sectors in the first round of impact alone. In a post on X, the Congress chief said the Centre had done “absolutely nothing” to safeguard livelihoods, particularly of farmers.
“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 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 wrote.
He further cited a Global Trade Research Initiative (GTRI) report, which suggested that India could lose one per cent of its GDP as a result of the tariffs, with China standing to gain.
He also drew attention to the threat of large-scale job losses in key export-driven industries, including MSMEs (Micro, Small & Medium Enterprises).
“Global Trade Research Initiative (GTRI) suggests that almost 1% of our GDP could be impacted, and that China would benefit. Several export-oriented important sectors, including MSMEs, will experience massive job losses,” Kharge added.
The Congress leader claimed that the Indian textile sector alone could lose around 500,000 jobs, while the Gems and Jewellery industry risked losing between 150,000 and 200,000 jobs.
He also highlighted that nearly 100,000 workers in diamond cutting and polishing across Gujarat’s Saurashtra region had already lost their jobs since April, when the US first imposed a 10% base tariff.
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“Indian textile export sector is facing potential job losses of about 500,000 including both direct and indirect employment. In the Gems & 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% base US tariff was put in place,” Kharge said.
He further warned that the livelihoods of half a million shrimp farmers, and another 2.5 million indirectly dependent on the sector, were now under severe threat.
“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. You failed in securing a trade deal. Now you are failing to protect our country,” Kharge said.
Trump’s 50% tariffs took effect on Wednesday, posing major challenges for India’s low-margin and labour-intensive export sectors.
The move follows a draft notice published by the US Customs and Border Protection (CBP), which said the order would take effect from August 27.
The duties have been imposed under President Trump’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.”
According to the notice, the higher tariffs apply to all Indian goods that are either entered for consumption in the United States or withdrawn from bonded warehouses for consumption. With this, the new 50% tariff on Indian imports to the US is now in force.
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