NEW DELHI: Even as the United States Supreme Court declared the tariff imposed by President Donald Trump illegal, the Congress on Saturday demanded that the BJP-led central government immediately put the Indo-US interim trade framework on hold.
Briefing reporters at the party’s old headquarters, Congress General Secretary in-charge of communications Jairam Ramesh said, “We demand that in view of the US Supreme Court’s decision on tariff, the Modi government should immediately put the Indo-US framework of interim agreement on hold.”
He added: “Use the clause in the joint statement and renegotiate the deal to eliminate liberalisation of imports in agriculture.”
The Congress leader said the government must categorically state that there will be no import liberalisation until clear clarifications come from the American side and ensure that Indian farmers are protected.
Ramesh, a Rajya Sabha member, also sought detailed clarifications from the government on the India-US interim trade deal and called for renegotiating the agreement afresh.
He asked Prime Minister Narendra Modi to clarify whether he agrees with Trump’s statement that nothing changes in the trade deal with India.
Asserting that the India-US interim agreement would adversely impact farmers, the Congress leader said the government should keep the deal on hold until clarifications are provided.
“We demand that the Prime Minister should categorically state that we will not carry out import liberalisation after the Supreme Court decision as there is a rethink in India’s policy, and we will not proceed with import liberalisation till clarifications are made,” he said.
“On February 2, President Trump announced the deal, stating that he was happy that an agreement had been reached and that on the request of the Prime Minister it would be effective immediately,” he said, adding that the sequence of events was significant.
Launching an attack on the government, he questioned why the Prime Minister was in such haste to announce the deal.
Ramesh claimed, “We believe this was connected to Leader of Opposition Rahul Gandhi’s remarks in the Lok Sabha, where he raised the issue of China and former Army chief MM Naravane’s book.”
“We believe that to divert attention from that, Prime Minister Modi requested Trump to make this announcement,” Ramesh alleged.
“Our second question is this: when the Prime Minister and the Commerce Minister, Piyush Goyal, knew since December that the Supreme Court verdict could come at any time—and many believed it might strike down the tariffs—why did you hurriedly conclude the deal knowing the verdict could go against Trump?” Ramesh asked.
He clarified that a 10 per cent tariff would be imposed on imports and, as per law, would remain in force for 150 days.
“Trump has also stated that nothing changes for the Indo-US trade deal. So we want to ask the Prime Minister, does he agree with his friend’s statement that the verdict will have no impact on the deal?” Ramesh asked.
He further pointed out that the framework provides that in the event of any changes by either side, the US and India can modify their commitments.
Ramesh also noted that six of the nine judges of the US Supreme Court ruled against Trump’s tariff, while only three supported it.
“This is not a narrow margin—out of nine, six judges opposed it, and only three backed the tariff taxes,” he said.
He added that among the six justices who ruled against the tariffs, two had been appointed by Trump himself.
Ramesh also highlighted that before this interim trade agreement, the average tariff stood at 3.5 per cent.
“Now it will be 10 per cent. It is nearly triple what was in place earlier,” he claimed.
The Congress leader said the US Supreme Court’s order was significant and that the Indian government should keep the trade agreement on hold in light of it. Until a proper explanation is given by the US, India should not proceed with import liberalisation, he said.
“We demand that the Prime Minister explain in simple language that after the US Supreme Court order, India is rethinking its position and will not undertake import liberalisation so that lakhs of farmers are not put at risk,” he added.
On Friday night (Indian time), the US Supreme Court struck down Trump’s global tariffs, saying they were contrary to the American Constitution.
In a major setback to Trump’s key economic agenda in his second term, the US Supreme Court, in a 6-3 verdict authored by Chief Justice John Roberts, ruled that the tariffs imposed on countries worldwide were illegal and that the president had exceeded his authority in levying the sweeping duties.
After the ruling, Congress leader Rahul Gandhi accused Prime Minister Narendra Modi of being “compromised”, stating that his “betrayal” in the India-US interim trade deal had been exposed.
The Congress has alleged that the trade deal had turned into an “ordeal” for the country due to the Prime Minister’s “desperation and surrender”.
Earlier this month, as the US and India announced that they had reached a framework for an interim trade agreement, Trump signed an Executive Order removing the 25 per cent punitive tariffs imposed on India over its purchases of Russian oil. The US president noted New Delhi’s commitment to stop directly or indirectly importing energy from Moscow and to increase purchases of American energy products.
