Mallikarjun Kharge Criticizes U.S. Tariffs, Warns of Job Losses

Quick Summary

• The U.S. has imposed an additional 25% tariff on Indian goods, raising the total tariffs to 50%.
• Congress president Mallikarjun Kharge criticized Prime Minister Narendra Modi’s foreign policy for contributing to the tariff increase, estimating a ₹2.17 lakh crore loss across 10 sectors.
• Key industries affected include agriculture (e.g., cotton farmers), textiles, gems and jewelry, shrimp farming, and MSMEs.

– Textile sector may face potential job losses of approximately 500,000 workers.
– Gems and jewellery sector could see 150,000-200,000 layoffs; diamond polishing in Gujarat severely impacted since April’s initial tariffs.
– Shrimp farming livelihood for ~3 million individuals threatened directly and indirectly.

• Global Trade Research Initiative (GTRI) suggests nearly 1% of India’s GDP might potentially be affected while China stands to benefit from India’s diminished trade role.

Indian Opinion Analysis

the imposition of new U.S. tariffs represents a notable challenge for Indian exports at a time when global competition is already intense. Sectors such as textiles and gems-which are heavily labor-intensive-face dual setbacks through potential job losses on one hand and reduced competitiveness in international markets on the other.

From India’s perspective, this issue highlights the necessity for calibrated foreign policy approaches that balance diplomatic engagement with tangible economic outcomes like trade agreements or concessions. With an estimated impact reaching nearly 1% of GDP according to GTRI data, proactive measures such as negotiating alternative trade routes or subsidies for affected sectors could be vital in mitigating long-term impacts.

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