Congress Criticizes US Trade Policies Under Trump Administration

The Congress party has raised alarms over the Trump administration's trade policies, particularly its impact on international institutions like the WTO. Jairam Ramesh criticized the US for undermining multilateral agreements and imposing tariffs on countries, including India. With concerns about a potential trade war and its implications for the global economy, Ramesh emphasized India's significant stake in these international accords. As tensions rise, the effectiveness of the WTO in regulating trade is being questioned, echoing similar sentiments from Trump's previous term.

By Narendra Chaudhary Aug 1, 2025, 17:19 IST

Congress Voices Concerns Over US Trade Actions

On Friday, the Congress party expressed its discontent, stating that India cannot simply stand by and watch as the Trump administration undermines global institutions like the World Trade Organization. Congress leader Jairam Ramesh emphasized that merely creating slogans is insufficient in the face of such actions.

Ramesh took to social media to highlight that the multilateral trading system, which the US once championed, has been severely compromised. He noted that the current US strategy favors bilateral negotiations, often leading to unilateral decisions.

He further criticized Trump for dismantling key organizations such as the World Health Organization and withdrawing from significant agreements like the Paris Climate Accord and UNESCO.

Ramesh pointed out that India has a crucial interest in these international agreements and institutions.

Ramesh's remarks followed Trump's recent executive order reinstating reciprocal tariffs on numerous countries, including India, that lack separate trade agreements with the US.

Earlier this week, Trump announced a 25% tariff on imports from India, along with an unspecified penalty for India's military purchases from Russia amid the ongoing conflict in Ukraine.

Although the tariffs were set to take effect on Friday, they will officially begin on August 7.

Trump also stated that he is indifferent to India's dealings with Russia, suggesting that both countries could face economic decline together.

He criticized India's high tariffs, claiming they are among the highest globally, and noted that trade between the US and Russia is minimal.

These tariffs have raised alarms about a potential trade war that could destabilize the global economy and lead to a recession.

The World Trade Organization, established in 1995, aims to lower trade barriers and promote sustainable development. It also sets the rules for international trade and resolves disputes between nations.

However, since the announcement of these tariffs, many have questioned the organization's ability to effectively manage global trade.

During his previous presidency, Trump had also threatened to withdraw from the World Trade Organization.