Trade Deal Concerns: India's Response to US Tariffs

Trade Deal Concerns: India's Response to US Tariffs.webp


New Delhi, February 9 DMK Rajya Sabha member P Wilson accused the government on Monday of "submitting" to the US in striking a "one-sided" trade deal and demanded that it disclose the details of the agreement.

Participating in a general discussion on the Union Budget 2026-27 in the Upper House, Wilson alleged that the US's "weaponization of tariffs" would have pressured the Indian government and claimed that the trade deal would cause irreparable hardship to India's domestic manufacturers and farmers.

"The entire nation is very concerned about this trade deal with the USA, while Capitol Hill is celebrating, but we have yet to hear detailed information from Raisina Hill," he noted.

Wilson further said, "...we are very unhappy with this submission to the US. India is a proud nation and civilization. This weaponization of tariffs should have pressured the government to comply."

Asking how India agreed to purchase $500 billion of American exports in five years, the DMK MP said, "The total US-India bilateral goods trade was just $132.13 billion in 2025. Now you have committed to purchasing $100 billion worth of goods from America every year. Who will consume these? Which domestic products will be replaced by American goods?"

Citing media reports, he said that India is eliminating its reducing tariffs on US-made industrial goods, food, and agriculture, but the US will continue with an 18% tariff on textiles, leather goods, organic chemicals, and goods originating from India.

"Is this fair? Why have we agreed to this obviously one-sided trade deal that will cause irreparable hardship to our domestic manufacturers and farmers?" he asked.

Wilson noted that the impact of US tariffs on the textile industry in India, especially in Tamil Nadu, is terrible.

Far from compensating them for the loss suffered over the past few decades due to "sudden" changes in the tariff structure that saw exports being put on hold, Wilson added, "The uncertainty of this new trade deal is adding to this challenge."

Referring to Prime Minister Narendra Modi's "Atmanirbhar Bharat" slogan and the "Make in India" lion symbol, he asked, "Has the fierce lion become a pet cat in front of the US? What happened to our Indian-made goods?"

He further said, "The Union government has to disclose the specifics (of the US trade deal) to this August House and to the nation, so that farmers, business owners, and entrepreneurs know how to plan their businesses in the coming years."

Earlier, BJP member Arun Singh defended the government, saying that the whole world is today turning towards India. From credit rating agencies to global institutions, everyone is applauding India's schemes, policies, and systems, and they are seeing that the country is becoming a global hub.

"As a result of that, within a year, India has inked six agreements," he said, citing examples of India's deals with Oman, New Zealand, the UK, the EU, and the US.

"This agreement is the biggest among these, and it shows India's power, potential, and ability to emerge as a global hub," Singh asserted.
 
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