After the Opposition’s uproar in Parliament, the Samyukta Kisan Morcha (SKM) on Tuesday raised concerns over the India-US trade deal. The SKM, an umbrella body of various farmer unions, criticized the claim that India’s import duty on several agricultural products has been slashed to zero in the “historic” deal.
While limited information about the deal is available, both sides are working to put it in writing, according to Commerce and Industry Minister Piyush Goyal.
Why are farmers angry?
The farmers’ body claimed that the deal will allow the US to flood the Indian markets with highly subsidized agricultural products, PTI reported.
“The SKM strongly condemned the betrayal of the people, especially farmers, by the Modi government, allowing zero per cent import tariff on US goods, surrendering to the pressure of US Imperialism,” the farmers’ union body told. PTI.
SKM represents the farmers’ union in talks with the government, issues statements on behalf of all the unions, and coordinates the strategy and tactics between the disparate groups. The collective was founded in 2020 during the farmers’ protest against the agri laws, which were later withdrawn.
“This trade deal to allow Indian markets to be flooded by highly subsidized US agricultural products will devastate the entire peasantry in India,” the SKM said.
But, is it really so?
Amid heightened speculations, Goyal assured that India has protected the interests of its “sensitive” agriculture and dairy sectors in the bilateral trade pact.
He said,[Prime Minister] PM Modi has always championed both the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for the people in this sector.”
“…The sensitive factors of India’s economy, particularly agriculture and dairy, have been protected,” he assured on Tuesday.
Goyal further clarified that a joint statement will be issued by both countries soon, outlining the details of the pact. The two countries have reached a framework for a bilateral trade agreement.
“We will be shortly issuing a joint statement…along with the details which we will be shortly inking with the US. And as soon as the final understanding of the deal is inked and the joint statement is finalized, technical processes are completed, full details will be shared,” he said.
Who said what on India-US trade deal
US President Donald Trump
Donald Trump announced on Monday that India and the US had agreed to a much-awaited trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18% from the current 25%.
Making the announcement, Trump said India will move forward to reduce “tariffs and non-tariff barriers” against the US to zero, adding New Delhi would buy American goods, including energy, worth more than $500 billion.
Prime Minister Narendra Modi
PM Modi thanked Trump in a post on X, confirming a tariff reduction from 25% to 18%, without detailing any other aspects of the US-India deal.
Modi wrote: “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi wrote.
“President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” the prime minister added.
Union Commerce Minister Piyush Goyal
During a press conference on Tuesday, Goyal said the India-US trade deal is in the final stages of detailing between the negotiating teams of the two countries. He said that as soon as the final understanding of the deal is inked, and the joint statement is finalized and technical processes completed, the details will be shared.
“Indians are celebrating a trade deal which is under the final stages of detailing between the negotiating teams of both countries,” he said.
“We will shortly be issuing a joint statement by both countries along with the details, which we will be shortly inking between the United States of America and India,” he added.
“As soon as the final understanding of the deal is inked and the joint statement is finalized, technical processes are completed, full details will be shared,” Goyal said.
Goyal said the deal would “protect the sensitive sectors, the interests of our agriculture and our dairy sectors in full respect, opening up huge opportunities for our labour-intensive sectors, export sectors in textiles, plastics, apparel, home decor, leather and footwear, gems and jewellery, organic chemicals, rubber, goods, machinery, so many products, aircraft components. This is truly a deal that every Indian can be proud of.”
US secretary of agriculture Brooke Rollins
Brooke Rollins said on Monday (local time) that Washington will export more farm products to India as part of the deal that will pump more cash into rural America.
“Thank you US President Donald Trump for ONCE AGAIN delivering for our American farmers. New US-India deal will export more American farm products to India’s massive market, lifting prices, and pumping cash into rural America,” read Rollins’ post on
She added, “In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products and today’s deal will go a long way to reducing this deficit. America First victory on top of the dozens of deals for ag,” she said on X.
US Trade Representative Jamieson Greer
Jamieson Greer said in an interview with CNBC on Tuesday that India will lower tariffs on a wide array of US industrial and agricultural goods to 0%– raising sharp questions about the impact on farmers and domestic industries.
He said India will lower tariffs on a “vast array” of American industrial and agricultural goods, such as “fruits, vegetables”, to zero under the trade deal announced by Trump.
Greer, however, noted that India will continue to control “certain key areas” that enjoy protection.
Greer said that the US will continue to maintain some level of tariff against India – 18% – “because we have this giant trade deficit with them, but they’ve also agreed to reduce their tariffs for us on a variety of agricultural products, manufactured goods, chemicals, medical devices, etc. It’s an exciting opportunity for both countries,” he said.
Congress, Opposition
The Congress questioned claims that agriculture and dairy have been protected, and sought clarity on tariff reductions to 18% from 25%.
The party also raised concerns about Trump’s claims that India may reduce tariffs to zero on certain American goods and purchase $500 billion of US energy, technology, agricultural, coal and many other products. India is yet to confirm these claims.
Leader of Opposition (LoP) in Lok Sabha, Rahul Gandhi, on Tuesday, alleged that PM Modi has buckled under US pressure to finalize a trade deal and has ‘sold out’ the hard work of Indian farmers through the agreement.
Gandhi alleged that Modi “has been compromised” and that Indian farmers must understand their hard work, as well as their blood and sweat, has been “sold out” through the India-US trade deal. He also said the entire country had been “sold out”.
Goyal accused Gandhi of misleading the country and called him a “negative-minded leader”.
Meanwhile, Congress leader Jairam Ramesh hit out at Modi in an
Ramesh also said, “…not only has his betrayal of national security been exposed, but the farmers of India are now seeing through his duplicity and his willingness to sell out their interests.”
