IndiaPosted at: Sep 20 2026 6:14PM


Surjewala Slams Modi govt over US tariff threat, says India’s economic sovereignty at stake

New Delhi, Sep 20 (UNI) Congress leader Randeep Singh Surjewala on Sunday launched a scathing attack on the Narendra Modi government over the United States’ proposed 100 per cent tariffs on Indian exports, accusing it of failing to protect the country’s sovereign right to purchase affordable energy and leaving its export economy exposed to external economic pressure.
In a statement posted on social media platform X, Surjewala described the situation as “100% Tariffs, 0% Spine!” and alleged that the government had surrendered India’s economic and national interests.
“India is a sovereign republic with the right to buy energy from any Nation that meets our National Interests and at a price our people can afford,” he said, arguing that India’s friendship with Washington could not make its national interests “subservient to the demands of the White House”. “Securing affordable energy for 140 crore people is our sovereign duty,” he said.
Surjewala said the developments represented what he termed the “abject capitulation” of the Indian economy and people’s interests, alleging that after years of projecting India as a global power, the Modi government had failed to build the economic and diplomatic leverage required to withstand external pressure. “After 12 years of ‘Vishwaguru’ rhetoric, the Modi Govt has failed to build the counter-leverage needed to protect India from external economic pressure,” he alleged, accusing the government of failing to stand on an equal footing with other countries in defending India’s interests.
At the centre of Surjewala’s criticism is India’s continued purchase of Russian crude and the tariff and sanctions measures being considered by Washington. He claimed that while private refiners had benefited from discounted Russian crude, the government had left an export economy worth $86.5 billion vulnerable to US pressure. Citing figures in his statement, Surjewala said Russia was India’s largest crude supplier between March and June 2026, with imports totalling 244.89 million barrels.
He linked the situation to the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, enacted on September 18, which, according to his account, gives the US President authority to impose tariffs of up to 100 per cent on countries purchasing Russian energy. Surjewala described the legislation as the culmination of what he characterised as the Modi government’s failure to develop an effective economic and diplomatic response to Washington’s demands. Laying out what he called the “chronology” of events, the Congress leader alleged that the government had repeatedly responded to US pressure rather than pursuing an independent strategy.
He claimed that on February 6, Washington demanded that India reduce its purchases of Russian crude in exchange for removal of an additional 25 per cent penal tariff, after which Indian imports of Russian oil fell to 1.08 million barrels per day, or 20.6 per cent of total imports. He further alleged that an 18 per cent tariff framework announced on February 20 was subsequently struck down by the US Supreme Court two weeks later. Referring to the conflict involving the United States, Israel and Iran that erupted on February 28, Surjewala said restrictions around the Strait of Hormuz added to India’s energy-security concerns.
He claimed that around 40 per cent of India’s crude imports had previously moved through the waterway and that strategic reserves covered only about 25 days. He also alleged that GAIL and Indian Oil Corporation were forced to ration gas supplies to domestic industrial users amid the uncertainty. According to Surjewala, the US subsequently allowed Indian refiners to purchase Russian crude between March 5 and May 16 because of concerns that global oil prices could rise above $100 a barrel. He said Russian crude imports rebounded to 2.08 million barrels per day in March, rose to 56 per cent of imports in July and stood at 45 per cent, or 2.08 million barrels per day, in August. He alleged that Washington allowed the waiver to lapse in May before moving towards tougher penalties. Surjewala also pointed to September 18, when US President Donald Trump signed H.R. 5334, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. He argued that the legislation could expose countries purchasing Russian energy to tariffs of up to 100 per cent, subject to its implementation. The Congress leader accused Washington of applying a double standard, pointing to exemptions relating to Russian enriched uranium, which he said remained important to the US nuclear-fuel supply chain. He also cited India’s increased imports of Venezuelan crude, arguing that Indian refiners were increasingly operating within a US-regulated energy environment while facing penalties over Russian purchases. Surjewala further warned that any new tariff could come on top of existing duties, increasing the pressure on Indian exporters. Referring to Section 232 tariffs on steel, aluminium, copper and derivatives, which he said had been raised to 50 per cent, he calculated that affected Indian metal exports could face a potential combined exposure of 150 per cent if a full 100 per cent Graham Act tariff were imposed. He also highlighted the potential impact on India’s textile sector. According to the calculations cited by him, Indian cotton garments could face a combined tariff burden of 126.5 per cent, compared with 26.5 per cent for Bangladesh and 29 per cent for Vietnam.
Surjewala said such a differential could approach 100 percentage points and place severe pressure on Indian MSMEs operating on margins of only 5–8 per cent, potentially prompting US buyers to shift orders to competing countries. He identified Panipat’s handloom industry, Tiruppur’s knitwear sector, Andhra Pradesh’s aquaculture industry and the diamond-cutting and polishing industry in Surat and Saurashtra among the sectors that could face serious consequences. Surjewala claimed that Panipat generates around Rs 60,000 crore in annual turnover, including Rs 20,000 crore in exports, with about 60 per cent of exports going to the US. Citing local industry bodies, he alleged that earlier tariff measures and supply disruptions had already reduced business by around 50 per cent and warned that another 100 per cent duty could lead to widespread factory closures. On Tiruppur, he said the knitwear cluster exports approximately Rs 45,000 crore annually, including around Rs 15,000 crore to the US market. He claimed that exporters had reported orders worth Rs 3,000 crore being put on hold during the earlier 50 per cent tariff shock and warned that another major tariff increase could trigger layoffs, particularly among migrant workers from Odisha, Bihar and Jharkhand. Turning to Andhra Pradesh’s aquaculture industry, Surjewala said the state accounts for around 82 per cent of India’s shrimp production and that the US represents a market worth approximately $2.4 billion. He claimed that recent increases in US anti-dumping duties had pushed farmgate shrimp prices to between Rs 350 and Rs 395 per kg against production costs of around Rs 300 per kg, leaving small farmers with limited margins. A further 100 per cent tariff, he warned, could eliminate those margins and hit farmers in areas such as Bhimavaram and Machilipatnam.
Surjewala also highlighted the diamond-cutting and polishing industry in Surat and Saurashtra, citing the disruption caused by sanctions affecting Russian rough diamonds, which he said account for around 30 per cent of global supply. He claimed that sanctions had disrupted access to raw materials for Surat’s diamond industry and cited the Diamond Workers union Gujarat’s reported figure of more than 100 diamond polishers dying by suicide over the past two years amid debt and reduced working hours.
A further US tariff on polished diamonds, he warned, could reduce demand in one of the industry’s major markets. Surjewala argued that the issue went beyond tariffs and trade and involved India’s broader economic sovereignty. “True sovereignty means having the strength to make independent geopolitical choices and protect the domestic economy from the consequences,” he said, alleging that the Modi government had failed on both fronts. His statement comes amid continuing concern among Indian exporters over the implications of the US sanctions legislation and the possibility of additional trade restrictions. The precise products that could be covered, the tariff rates that may ultimately be applied and the manner in which the US administration implements the legislation will depend on subsequent decisions by Washington. UNI SKA AAB
Tags: #Surjewala Slams Modi govt over US tariff threat# says India’s economic sovereignty at stake
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