The political row over the interim trade agreement between India and the United States intensified after Congress leader Pawan Khera termed the deal a strategic misstep that imposed “all pain, no gain” on India.
Khera alleged that the agreement resulted in an effective tariff burden of 18.4% on India, including a 15% reciprocal tariff and an additional Most Favoured Nation (MFN) rate. He argued that India rushed into the deal signed on February 6 to reduce a steep 50% penal tariff imposed by the US over India’s Russian oil imports.
The criticism comes after the Supreme Court of the United States struck down sweeping global tariffs imposed under emergency economic powers, ruling that the move exceeded presidential authority. The verdict effectively brought tariff levels back closer to MFN rates of around 3.4–3.5%, raising questions about India’s earlier agreement.
Meanwhile, US President Donald Trump announced plans to raise global tariffs to 15% using executive powers under the Trade Act of 1974, despite opposing the court’s ruling.
The Congress party said the deal reflected weak negotiation and unnecessary concessions, arguing that changing global tariff policies have undermined the economic logic behind the agreement. The Indian government has not yet officially responded to the criticism.
