Rahul Gandhi Predicts PM Modi Will Meekly Bow To Trump's Tariff Ultimatum
The remarks come amid a continued stalemate over a proposed interim India-US trade deal, which, if not signed before the July 9 deadline, would trigger a 26% tariff on Indian exports to the US under Trump's controversial "Liberation Day" reciprocal tariff regime, announced on April 2.
'Piyush Goyal can beat his chest all he wants. Mark my words, Modi will meekly bow to the Trump tariff deadline,' Gandhi said in a post on X.
Piyush Goyal can beat his chest all he wants, mark my words, Modi will meekly bow to the Trump tariff deadline. pic.twitter.com/t2HM42KrSi — Rahul Gandhi (@RahulGandhi) July 5, 2025
Gandhi's comment was a response to Union Commerce Minister Piyush Goyal, who maintained that India would not enter into any agreement that compromises national interest, especially in sensitive sectors like agriculture and dairy.
'India never enters into trade deals based on deadlines or time pressure. It should be a win-win agreement, and only when India's interests are safeguarded. If a good deal is formed, India is always ready to engage with developed countries,' Goyal said at a business event in Delhi.
According to India Today, earlier sources had said that negotiators on both sides were trying to finalize an interim agreement before the July 9 deadline. Indian negotiators, led by Special Secretary Rajesh Agarwal, have extended their stay in Washington, D.C. in an effort to salvage the deal.
The reciprocal tariffs, if implemented, could significantly impact Indian exports in sectors such as textiles, gems and jewellery, chemicals, and leather, where India has been seeking expanded market access in the US.
Meanwhile, the United States has pushed for greater access to India's agricultural markets, especially in maize, soybeans, and the dairy sector, which employs more than 80 million people in India. India, however, has held firm, refusing to lower tariffs on these items, citing domestic livelihood concerns.
The US had earlier suspended the imposition of the 26% tariff for 90 days, giving countries, including India, time to negotiate a mutually acceptable deal. But with the deadline fast approaching, tensions appear to be escalating on both sides.
President Trump, who has previously labeled India as a 'tariff king' and a 'big abuser of trade', has made tariff parity a key talking point in his economic agenda ahead of the upcoming US elections.
Despite the looming threat of tariffs, Goyal insisted that India would prioritize national interest over imposed timelines.
The next few days are crucial, as trade officials from both nations try to bridge the gap between protectionist domestic priorities and strategic economic cooperation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
11 minutes ago
- First Post
Trump backs Patriot missiles for Ukraine after 'disappointing' call with Putin
Ukraine has been asking Washington to sell it more Patriot missiles and systems that it sees as key to defending its cities from intensifying Russian air strikes read more An explosion of a drone lights up the sky over the city during a Russian drone and missile strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine. Reuters After meeting with Ukrainian President Volodymyr Zelenskyy on Friday, US President Donald Trump stated that Ukraine will require Patriot missiles for defence, and he expressed anger with Russian President Vladimir Putin's refusal to stop the conflict. Trump told reporters on Air Force One that he had an excellent chat with Zelenskyy, emphasising that he was 'very unhappy' with his talk with Putin the day before, citing the Russian leader's inability to cooperate on a ceasefire. STORY CONTINUES BELOW THIS AD When asked if the US would agree to sell additional Patriot missiles to Ukraine, as requested by Zelenskyy, Trump replied, 'They're going to need them for defense… They're going to need something because they're being hit pretty hard.' Trump touted the efficacy of the Patriot missiles, calling the weapon 'pretty amazing.' Asked about the prospects for a ceasefire, Trump said, 'It's a very tough situation… I was very unhappy with my call with President Putin. He wants to go all the way, just keep killing people - it's no good.' Zelenskyy said he had agreed to work on increasing Kyiv's capability to 'defend the sky' as Russian attacks escalate, adding in a message on Telegram that he discussed joint defense production, as well as joint purchases and investments with the US leader. Ukraine has been asking Washington to sell it more Patriot missiles and systems that it sees as key to defending its cities from intensifying Russian air strikes. A decision by Washington to halt some shipments of weapons to Ukraine prompted warnings by Kyiv that the move would weaken its ability to defend against Russia's airstrikes and battlefield advances. Germany said it is in talks on buying Patriot air defense systems to bridge the gap. STORY CONTINUES BELOW THIS AD A source briefed on the Trump-Zelenskyy call told Reuters they were optimistic that supplies of Patriot missiles could resume after what they called a 'very good' conversation between the presidents. Russia pummels Kyiv Trump said he also spoke with German Chancellor Friedrich Merz about Ukraine's request for Patriot missiles but that no decision had been made to supply the advanced missiles. US news outlet Axios reported, citing unnamed sources, that the call lasted around 40 minutes and that Trump told Zelenskyy he would check what US weapons due to be sent to Ukraine, if any, had been put on hold. Zelenskyy, in his nightly video address, said he and Trump had agreed to 'arrange a meeting between our teams to strengthen air defenses. 'We had a very detailed discussion on joint production. We need it, America needs it.' The conversation came a day after Trump said he had a disappointing call with Putin. Russia pummeled Kyiv with the largest drone attack of the war across the capital hours after Trump's conversation with Putin on Thursday. STORY CONTINUES BELOW THIS AD Zelenskyy called the attack 'deliberately massive and cynical.' Kyiv in the past received Patriot batteries and ammunition from the US in the form of aid under then-President Joe Biden. Trump criticized him for sending weapons to Ukraine without getting anything in return, and since taking office has overseen a dramatic shake-up of relations with Kyiv.
Mint
12 minutes ago
- Mint
Aakash accuses EY of professional misconduct, advising rivals in conflict of interest
New Delhi, Jul 5 (PTI) Test preparatory firm Aakash Educational Services has sent a legal notice to consultancy firm EY, its partners and officials, accusing them of advising rivals in conflict of interest and professional misconduct, the company said on Saturday. Aakash Educational Services Ltd (AESL) has alleged that EY was deeply involved in its financial operations since 2021, including advising on the proposed merger with Think & Learn Private Ltd, which owns the Byju's brand. The test preparatory firm said EY has been involved in the structuring and conversion of debentures into equity and it has now come to light that the consultancy firm also acted as the "exclusive financial advisor and official result validators" to AESL's direct competitor, Allen Career Institute. "Aakash Educational Services has served a second legal notice through Senior Advocate CV Nagesh to multiple partners and officials of Ernst & Young LLP (EY), accusing the firm of conflict of duty and professional misconduct," AESL said in a statement. An email query sent to EY did not elicit any reply. "The legal notice highlights that despite AESL's repeated requests through emails dated April 12, May 6, and May 17, 2025, EY has failed to provide documents and communications related to key transactions, suggesting concealment of critical information," the statement said. AESL alleged that the refusal contradicts EY's substantial involvement in AESL's decision-making and execution of transactions, including the once-proposed merger with TLPL and matters related to the issuance and conversion of debentures. AESL, Head for Legal, Sanjay Garg said the company has already issued notice to Ajay Shah of EY and also impleaded him and other partners of EY in the pending oppression and mismanagement petition filed by the RP of TLPL, who is also from EY, to respond to the allegations therein. "AESL has now come to know EY acted as an exclusive financial advisor and official result validators to a competitor which is a matter of deep concern. AESL is examining the initiation of further civil and criminal proceedings against EY in this regard," Garg said. AESL has claimed that this simultaneous engagement with a competitor represents an unethical conflict of interest and has called for an investigation into EY's conduct. Byju's founders have also sued EY, citing an email from a whistleblower which shows the involvement of the consultancy firm with GLAS Trust. US-based GLAS Trust has filed an insolvency case against Byju's.
Mint
12 minutes ago
- Mint
Indias rights in WTO to retaliate on US auto tariffs wont affect trade deal talks: Official
New Delhi, Jul 5 (PTI) India's decision to reserve its rights to impose retaliatory duties on the US over imposition of tariffs on auto parts is a procedural move under the WTO agreement on safeguards and it will not affect ongoing negotiations on the proposed trade pact between the two countries, an official said. India on Friday proposed imposing retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on imports of the country's auto parts in the name of safeguard measures. The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US, according to a notification of the WTO being circulated at the request of India. "The notification in WTO is an essential step to reserve India's right, in accordance with the provisions of the agreement on safeguard and does not prejudice ongoing discussions, deliberations, negotiations for finalizing tranche one or subsequent tranches of India-US bilateral trade agreement (BTA) in any way," the official told PTI. The two countries have aimed to conclude the first phase of the BTA by fall (September-October) this year. The agreement is aimed at more than doubling bilateral trade to USD 500 billion by 2030 from the current USD 191 billion. Both India and the US are signatories to the Agreement on Safeguard at the WTO which empowers a WTO Member to suspend its tariff concessions to another member who introduces safeguard measures on its imports. On 26 March 2025, the US announced a 25 per cent ad valorem tariff on the import of automobiles and on certain automobile parts, including, from India under Section 232 of the Trade Expansion Act, 1974. "India treated it as a safeguard measure and gave a notice for consultation under the WTO agreement earlier. Now, as per the provisions of that agreement, after completion of 30 days period for consultation, as a next step, India has notified that it is reserving its right to suspend concession on equivalent US exports to India as a response to enhanced tariff of 25 per cent imposed by the US on Indian exports of auto components," the official said. Before the first phase, India and the US are negotiating to finalise an interim trade agreement before July 9, which marks the end of the 90-day suspension period of the Trump tariffs imposed on dozens of countries including India. US President Donald Trump on Friday reportedly stated that he has signed tariff letters to 10-12 countries to inform them about import duties to be levied on various products, and these would be sent on Monday. Meanwhile, sources have stated that there are uncertainties over the announcement of the interim trade agreement between India and the US before July 9. India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest, Commerce Minister Piyush Goyal has said on Friday. FTAs are possible only when both sides get benefitted and it should be a win-win agreement, he has said.
