Cong Slams Centre Over US Tariffs, H1B Visa

He stated that India's foreign policy has faltered under Prime Minister Narendra Modi's leadership, particularly in its dealings with the US. He highlighted that despite Modi's efforts to cultivate a friendship with Trump, including the "Howdy Modi" event, the US President still imposed significant tariffs on Indian imports.

In a post on X, Ramesh said, "The Trump double tariff has come into effect. This will undoubtedly hit our labour-intensive exports to the US - especially textiles, gems & jewellery, leather, marine products, and engineering as well."

He also criticised PM Modi's vision of 'Make India Great Again' (MIGA) — a phrase inspired by Trump's signature slogan 'Make America Great Again' (MAGA).

During his two-day visit to the US in February 2025, PM Modi stated that a joint vision of 'MAGA' and 'MIGA' would become a mega partnership for prosperity. "The people of America are well aware of President Trump's motto 'MAGA - Make America Great Again.' The people of India too are focusing on heritage and development... In the language of America, it's Make India Great Again - MIGA. When America and India work together, this MAGA plus MIGA becomes a 'mega partnership for prosperity'," the PM had said.

Ramesh said that the "same MAGA which Prime Minister Modi used in February this year, in his supposedly winning formula, MAGA+ MIGA= MEGA. This Modi-made MEGA has now become a MAHA headache for India."

He questioned the effectiveness of PM Modi's friendship with Trump, saying it has yielded no benefits for India. He earlier pointed out that Trump has made 30 claims about stopping Operation Sindoor and even hosted the Pakistani Army Chief, who was involved in the Pahalgam terror attacks, for lunch at the White House.

The Congress leader also spoke about the H-1B visa program, noting, "Over the last twenty four hours, the US Commerce Secretary has also spoken out against the H1B visa system of which the biggest beneficiaries have been Indian IT professionals. This has been one of the key demands of the MAGA base of President Trump, the same MAGA which Prime Minister Modi in February this year used in his supposedly winning formula MAGA+ MIGA= MEGA. This Modi-made MEGA has now become a MAHA headache for India."

This comes after US Commerce Secretary Howard Lutnick criticised the current H1B visa system, calling it a scam. In a post on X, he said, "The current H1B visa system is a scam that lets foreign workers fill American job opportunities. Hiring American workers should be the priority of all great American businesses. Now is the time to hire American."

The H-1B is a non-immigrant visa which allows US-based companies to hire foreign workers for speciality jobs like STEM and IT. People born in India are the largest beneficiaries, accounting for more than 70% of all approved H-1B petitions annually since 2015.

Sagarika Ghose, MP & Deputy Leader TMC, Rajya Sabha, also slammed the Modi government and held the Centre responsible for failing to protect India's exporters from the impact of Trump Tariffs.

In a post on X, she said, "As #TariffsOnIndia kicks in, exporters across India are facing ruin. Textile units have stopped production, seafood exporters face slowdown, crippling job cuts loom in the jewellery sector. The @narendramodi government is SQUARELY RESPONSIBLE for failing to protect India's exporters from the CRUSHING impact of #TrumpTariffs in an economy already facing an unemployment catastrophe."

Trump's 50% tariffs kicked in today, posing significant challenges for India's low-margin and labour-intensive export sectors. This follows the draft notice published by the US Customs and Border Protection (CBP) that stated that the order would come in effect from August 27.

According to the notice, the additional duties are being imposed to give effect to the President's Executive Order 14329 of August 6, 2025, titled "Addressing Threats to the United States by the Government of the Russian Federation." The order set a new rate of duty on imports of articles that are products of India.

The CBP said that the Secretary of Homeland Security has determined it necessary to modify the Harmonized Tariff Schedule of the United States (HTSUS) in line with the executive order.

The higher duties are applicable to all Indian products that are either entered for consumption in the US or withdrawn from warehouses for consumption. With this, the 50 per cent tariffs on India's imports to the US are now in effect.

Indian textile exports, which account for 12% of India's US-bound shipments, may face rising costs and reduced competitiveness. However, India's relatively lower tariffs compared to competitors like China and Vietnam could provide a long-term advantage.

A 15.3% decline in gems and jewellery exports is forecast due to increased prices for consumers. This sector is particularly vulnerable to tariff-related cost increases.

Shrimp exports, a significant contributor to India's seafood industry, are expected to decline by 20.2% due to higher costs for US buyers.

To mitigate these effects, India is exploring strategic responses, such as Bilateral Trade Agreements, negotiating trade deals with the US to stabilise relations and reduce tariff impacts, focusing on alternative markets and sectors less affected by US tariffs, and encouraging self-reliance and reducing dependence on imports through initiatives like "Make in India" and Production Linked Incentive (PLI) schemes.