IndiaPosted at: Sep 16 2026 1:11PM

Kharge accuses Modi govt of ‘capitulation’ amid US tariff threat

New Delhi, Sep 16 (UNI) Congress President and Leader of the Opposition in the Rajya Sabha Mallikarjun Kharge on Wednesday sharpened his attack on Prime Minister Narendra Modi over escalating India-US trade tensions, alleging that the government had repeatedly yielded to pressure from Washington and warning that exporters, farmers and other sections of the Indian economy could face the consequences.
In a post on social media platform X, Kharge directly targeted Modi over the threat of further US tariffs on Indian goods.
“Your dear friend ‘Abki Baar Trump Sarkar’ dictates, you capitulate and 140 Cr Indians are left to bear the consequences!” Kharge said.
He alleged that the prospect of tariffs of up to 100 per cent on Indian goods reflected the failure of the Modi government's foreign and trade policies.
“The threat of up to 100% US tariffs on Indian goods shows how your Govt’s Foreign and Trade policies have miserably failed!!” the Congress president said.
Kharge said a wide range of Indian industries could be exposed to a major tariff shock, specifically flagging pharmaceuticals, textiles, engineering goods, chemicals, auto components, gems and jewellery, electronics and technology.
“First came 25% tariffs, then 50%, and now the threat of 100%,” he said.
The Congress leader also questioned the India-US trade framework announced earlier this year, alleging that it would provide greater access to American agricultural products in the Indian market and adversely affect domestic farmers.
“Meanwhile, the Modi Govt agreed to a trade framework that expands American access India’s agricultural products, mortgaging the interests of our farmers!” Kharge said.
He further alleged that the framework “virtually forces to buy $500 billion worth of American goods over five years.”
The government, however, has defended the trade framework as an effort to expand Indian exports and secure greater market access in the United States, while maintaining that sensitive agricultural sectors, including dairy, meat, poultry and cereals, have been protected.
Kharge also connected the trade dispute with the government's recent decision concerning Merchant Discount Rate (MDR) on specified higher-value merchant transactions through the Unified Payments Interface (UPI).
Under the new arrangement, a 0.4 per cent MDR is to apply from October 15 to specified merchant UPI transactions above Rs 2,000, while person-to-person transactions will continue to remain free. The government has said that the vast majority of merchant transactions will remain unaffected.
“Yesterday’s surrender on the MDR on UPI is another stark example of your govt’s meekness!” Kharge said.
Linking the various developments, Kharge alleged that pressure from the United States was extending beyond tariffs and trade negotiations to immigration, visas and digital payments.
“From tariffs and trade to H1B1 immigration, visas and digital payments, the pressure from Washington keeps mounting, and you, ‘Howdy Modi ji’ keeps surrendering!” he said.
Kharge's remarks come against the backdrop of continuing uncertainty in India-US trade relations, with negotiations on market access and tariffs remaining a key issue between the two countries. The Indian government has maintained that it is engaged with Washington to protect India's economic interests while seeking improved access for Indian exporters to the US market.
The latest exchange also adds a political dimension to the ongoing debate over how India should respond to US tariff measures and negotiate its broader economic relationship with Washington, with the Opposition questioning the government's trade strategy and the Centre emphasising market access and protection for sensitive domestic sectors. UNI SKA AAB

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Kharge accuses Modi govt of ‘capitulation’ amid US tariff threat

16 Sep 2026 | 1:11 PM