Indo-US trade deal should be put on hold, says Congress

The Congress on Wednesday termed the Indo-US interim trade agreement as “distinctly one-sided” and demanded that it be put on hold, warning that it could prove disastrous for lakhs of farmers across the country.

Congress general secretary (communications) Jairam Ramesh, in a post on X, said it was “extraordinary” that the United States had imposed a 125.87 per cent duty on imports of solar modules from India. He questioned what the move indicated about US President Donald Trump’s commitment, “in letter and spirit”, to the India-US trade deal that had been praised by leaders in New Delhi as opening new doors for Indian exports.

Ramesh alleged that the agreement disproportionately benefits the US. According to him, while India’s imports from the US would be liberalised, Indian exports would remain vulnerable to unilateral decisions by the American administration. “There is only one way forward. India must be bold and put the deal on hold,” he said, adding that in its present form, the pact would severely impact farmers.

The remarks follow comments by senior Congress leader Rahul Gandhi, who on Tuesday claimed that the interim trade deal had been signed “under pressure” and described it as “an arrow in the heart of farmers”. Addressing a ‘Kisan Mahachaupal’ rally in Bhopal, Gandhi challenged Prime Minister Narendra Modi to scrap the agreement if he had the courage, asserting that the government would not be able to do so.

The political attack comes in the backdrop of a recent ruling by the Supreme Court of the United States, which held that tariffs imposed by the US president on several countries were illegal and exceeded executive authority. The Congress has cited the ruling to question the credibility and stability of the current trade arrangement.