Put India-US trade deal on hold, renegotiate terms: Congress

New Delhi (PTI): With the American Supreme Court striking down President Donald Trump's global tariffs, the Congress on Saturday demanded that Prime Minister Narendra Modi should put the India-US interim trade agreement on hold and renegotiate the terms of the deal.

Congress general secretary in-charge communications Jairam Ramesh said the government must state categorically that there will be no import liberalisation till clear cut clarifications from the American side and ensure that Indian farmers' interests are not hurt.

Speaking with reporters here, Ramesh sought clarifications from the government on the India-US interim trade deal and called for renegotiating the deal afresh. He asked Modi to clarify whether he agrees with Trump's statement that nothing changes in the trade deal with India.

Asserting that the India-US interim agreement will adversely affect farmers, Ramesh said the government should put this deal on hold till clarifications are made.

"We demand that the PM should categorically state that we will not carry out import liberalisation after the Supreme Court decision as there is a rethink in India's policy and we will not carry out import liberalisation till clarifications are made," Ramesh said.

"On February 2, President Trump made the announcement of the deal stating that he is happy that a deal has been reached and on the request of the PM this is effective immediately," he said, adding that the chronology of events is important.

The first question arises is why did the PM was in a hurry to announce this, he said.

"We believe that this was connected with Rahul Gandhi's remarks in the Lok Sabha, raising the issue of China and former Army chief Naravane's book. We believe that in order to divert from that, PM Modi requested Trump to announce this," Ramesh said.

The US Supreme Court on Saturday struck down Trump's global tariffs, saying it is against the American Constitution, Ramesh said.

"Our second question is that when the PM, the commerce minister (Piyush Goyal), knew from December that any time (now) the Supreme Court verdict could come, many believed that it could be struck down. Why did you hurriedly strike a deal when you knew the verdict could go against Trump," Ramesh said.

The 10 per cent tariff would be imposed on imports and as per law this will be for 150 days, he said.

"Trump has also stated that nothing changes for the Indo-US trade deal. So we want to ask the PM, does he agree with his friend's statement that the verdict will have no impact on the deal," Ramesh said.

The framework states that in the event of any changes from either side, the US and India agree that they can modify its commitments, Ramesh pointed out.

After the US Supreme Court struck down President Donald Trump's global tariffs, Congress leader Rahul Gandhi accused Prime Minister Narendra Modi of being "compromised", saying his "betrayal" in the India-US interim trade deal stood exposed.

The Congress has alleged that the trade deal had become an "ordeal" for the country subjected to by the prime minister's "desperation and surrender".

In a major setback to what was Trump's pivotal economic agenda in his second term, the US Supreme Court, in a 6-3 verdict written by Chief Justice John Roberts, ruled that the tariffs imposed by Trump on nations around the world were illegal and that the president had exceeded his authority when he imposed the sweeping levies.

Earlier this month, as the US and India announced they reached a framework for an Interim Agreement on trade, Trump issued an Executive Order removing the 25 per cent punitive tariffs imposed on India for its purchases of Russian oil, with the US president noting the commitment by New Delhi to stop directly or indirectly importing energy from Moscow and purchasing American energy products.

Under the trade deal, Washington would charge a reduced reciprocal tariff on New Delhi, lowering it from 25 per cent to 18 per cent.

Shortly after the court verdict, Trump asserted that there is "no change" in the trade deal with India.

"I think my relationship with India is fantastic and we're doing trade with India... India was getting its oil from Russia. And they pulled way back at my request, because we want to settle that horrible war where 25,000 people are dying every month," Trump said at a news conference Friday in the White House.

Trump said his relationship with Prime Minister Modi "is great". He then went on to repeat the claim that he stopped the war between India and Pakistan last summer using tariffs.

When asked about the deal with India, Trump said, "Nothing changes. They'll be paying tariffs, and we will not be paying tariffs.

"This is a reversal for what it used to be, as you know, India -- and I think Prime Minister Modi is a great gentleman, a great man, actually. But he was much smarter than the people that he was against in terms of the United States, he was ripping us off.

"So we made a deal with India. It's a fair deal now," Trump said.