India-US Trade Deal 'All Pain, No Gain', Says Congress' Pawan Khera

(MENAFN- AsiaNet News)

Congress Slams 'Masterstroke' Deal

Congress leader Pawan Khera on Saturday criticised the Centre over the India-US interim trade deal, alleging that despite claims of a "masterstroke," India is facing an effective tariff burden of 18.4 per cent. In a post on X, Khera said, "All pain, no gain. khaayaa piyaa kuch nhiiN, glaas todd'aa baarh aanaa After all the 'masterstroke' claims and clamour, India once again ends up with an effective 18.4% tariff burden. It is 15% + 3.4% (average MFN rate) = 18.4%." The India-US trade deal has left India with an effective 18.4% tariff burden, sparking criticism of the Modi government's concessions to the US.

Pawan Khera slammed the deal as "all pain, no gain," pointing out that countries like Brazil refused to rush into a deal and are now vindicated. "Along with this Modi has granted the most unreasonable concessions to Washington. So much ado for nothing. Meanwhile, countries like Brazil, which stood their ground and refused to rush into a deal with the U.S., must feel vindicated in their decision not to blink first. Tough days for the BJP ecosystem. They have to wake up to a new definition of the "masterstroke" everyday," he remarked.

Details of the 'Strategic Misstep'

Pawan Khera said that the recent US-India trade maneuvers not a "masterstroke," but a strategic misstep. His critique comes after India rushed into an interim deal on February 6 to lower a massive 50% penal tariff (imposed by the Trump administration over Russian oil imports) down to 18%. However, after the US Supreme Court struck down those global tariffs as unconstitutional on February 20, the legal floor for most countries theoretically dropped back to the 3.4% - 3.5% MFN rate. By having already "agreed" to an 18% reciprocal rate in the interim deal, Khera argued India has effectively locked itself into a much higher burden than it would have faced if it had simply "blinked last."

There was no immediate response from the government to his remarks.

Trump Vows to Raise Tariffs After Court Ruling

Earlier on Saturday, US President Donald Trump said that he is raising the 10% worldwide tariff on countries announced yesterday "to the fully allowed, and legally tested, 15% level. "In a post on his social media handle Truth Social, Trump also said that during "the next short number of months", his Administration will determine and issue the new and legally permissible Tariffs, which will continue "the extraordinarily successful process of Making America Great Again".

"Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been 'ripping' the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," Trump said.

"During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again - GREATER THAN EVER BEFORE!!! Thank you for your attention to this matter. President DONALD J. TRUMP," the post added.

The US Supreme Court ruled 6-3 that the Trump administration exceeded its legal authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose broad-based import tariffs. Terming SC's ruling as a "terrible decision", Trump on Friday announced he would sign an executive order for a 10% global tariff under Section 122 of the Trade Act of 1974. This authority allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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