Politics
Rahul Gandhi slams Centre over India-US trade deal, cites "18 percent tariff vs 0 percent," warns of impact on cotton farmers and textile sector.

Rahul Gandhi, Leader of Opposition in the Lok Sabha and Congress MP, on Saturday accused Narendra Modi and his government of misleading the public about tariff terms in the India–US interim trade deal, claiming it could hurt India’s cotton farmers and textile exporters. He said Indian garments face an 18% tariff in the US, while Bangladesh receives zero tariff access on garment exports if it imports American cotton.
He argued this creates a difficult situation for India, as importing US cotton would harm domestic farmers, while avoiding imports would weaken the textile industry. Gandhi also warned that Bangladesh may reduce or stop cotton imports from India, which could further damage Indian producers.
In a post on X, Gandhi accused the Prime Minister and his cabinet of creating confusion and concealing key details. He said a minister had admitted that India would need to import American cotton to receive similar tariff benefits. He questioned why this information was not disclosed earlier and claimed the agreement could lead to unemployment and economic hardship.
He criticized the government’s negotiation strategy, saying a proper deal should have protected both cotton farmers and textile exporters. Instead, he alleged, the current agreement threatens the livelihoods of millions who depend on these sectors and could push many families into financial distress.
The India–US Interim Agreement, announced recently, aims to establish a framework for a mutually beneficial trade partnership. It includes reducing or removing tariffs on various US industrial, agricultural, and food products. In return, the US will impose an 18% tariff on selected Indian exports such as textiles, footwear, chemicals, plastics, and machinery, while eventually removing tariffs on items like generic medicines, gems, diamonds, and aircraft parts.



