Trump's reciprocal tariffs: Congress questions govt for 'silence, inaction'

Reacting to US President Donald Trump's tariff announcement, Congress MP Manish Tewari said the Indian government needs to 'develop a spine and stand up to the US'

Congress MP Manish Tewari has criticised the Indian government for its "abject failure" in trade negotiations with the US. His remarks came after President Donald Trump on Thursday (IST) announced a 27 per cent "discounted" reciprocal tariff on India.

 

Tewari stated that the government needs to "develop a spine and stand up to the US."

 

"This represents a complete failure in the negotiations between the US and the Indian government. The US has imposed tariffs, expelled our students, and cancelled visas without provocation, yet the government remains silent. It must take a firm stand," news agency ANI quoted Tewari as saying.

 

 

Trump's sweeping 27 per cent tariff on all imports from India was part of his broader trade measures affecting multiple countries. During his announcement, he presented a chart highlighting that India levies a 52 per cent tariff on the US. Trump has frequently called India a "tariff king" and reiterated that the country is "very tough" in trade negotiations.

 

Political reactions

 

Congress President Mallikarjun Kharge also weighed in, saying, "Their friendship (US President Trump and PM Modi) and the way they embrace and converse clearly show that America (Trump) is a businessman. 'Aur wo humara customer phas gaya (and there our customer was stuck)'."

 

Meanwhile, Congress MP Gaurav Gogoi has submitted an adjournment motion notice in the Lok Sabha regarding the US tariffs on Indian exports. In his notice to the Lok Sabha Secretary-General, Gogoi emphasised the urgent need for a debate on the economic implications of these tariffs.

 

"It is concerning that despite multiple rounds of trade discussions, an amicable resolution has not been reached. The government must urgently implement diplomatic and trade countermeasures to protect Indian exporters and the workers reliant on these industries," he said.

 

Other political leaders have also voiced their concerns. Congress MP Randeep Surjewala criticised the Modi government's "silence" and "inaction" over the tariffs. "The +27% tariffs by the US on India take effect from Wednesday, April 3rd, 2025! Electronics & Communication, Pharmaceuticals, Machinery & Computers, Chemicals, Apparel, Yarn & Carpets, Fish, Meat & Processed Seafood, Gold & Jewellery, and many other sectors will be impacted. Where is the Modi government? Where are the Finance & Commerce Ministers? Why is the PM silent? Why are they 'missing in action' again?" he tweeted.

 

Congress MP Rajeev Shukla also criticised the move, calling the 26% tariff "fatal" for Indian businesses. He warned that businesses would suffer massive losses and argued that India has gained no benefit despite its past "friendship" with Trump.

 

However, BJP MP Praveen Khandelwal assured that the government is assessing the implications and will take necessary steps.

 

How did businesses react?

 

Manish Jain, Chief Strategy Officer and Director at Mirae Asset Capital Markets, noted that only specific items, such as copper, pharmaceuticals, semiconductors, lumber, gold, energy, and certain other minerals, have been exempted from the tariffs. He added that as bilateral trade talks with the US are ongoing, the tariffs could be revised, though the timeline remains uncertain.

 

Jain acknowledged that while the tariffs are a setback for Indian exporters, the increased duties on China, Mexico, and Canada could provide India with an opportunity to expand its market share in the US.

 

Echoing this view, Harsh Bhuta, Partner at Bhuta Shah & Co LLP, stated that while the tariffs pose a significant challenge, they could also serve as a catalyst for Indian businesses to enhance value addition, move up the export value chain, and invest in innovation.