Prime Minister Narendra Modi’s ambitious “MEGA” partnership—crafted as a fusion of “Make America Great Again” (MAGA) and “Make India Great Again” (MIGA)—has backfired, leaving India grappling with a massive economic headache. The Congress party seized the moment to criticize the government as the United States imposed a crippling 50% tariff on Indian goods, effective Wednesday morning. Congress leader Jairam Ramesh labeled it the “Trump double tariff,” a blow that threatens India’s labor-intensive export sectors, including textiles, gems, jewelry, leather, marine products, and engineering.
The tariff escalation stems from India’s continued purchase of Russian oil, a move that has drawn the ire of President Donald Trump. The additional 25% levy, layered atop an earlier 25% tariff enacted on August 7, was detailed in a draft order from the US Department of Homeland Security, targeting goods entering the US market after 12:01 am Eastern Daylight Time. This doubles the financial burden on Indian exporters, who now face one of the highest tariff rates globally.
Ramesh pointed to the irony of Modi’s February vision, unveiled during a high-profile Washington press conference with Trump, where the “MEGA partnership for prosperity” was touted as a game-changer. Instead, the strategy has unraveled, with the US commerce secretary recently targeting the H1B visa system—a lifeline for Indian IT professionals—further complicating bilateral ties. The Congress leader suggested this aligns with Trump’s MAGA base demands, turning Modi’s diplomatic triumph into a domestic liability.
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Despite the setback, Modi remains defiant. Speaking on Monday, he vowed not to compromise on the interests of farmers, cattle-rearers, and small-scale industries, even as pressure mounts. The 21-day negotiation window offered by Trump failed to yield a resolution, leaving India to brace for economic fallout. Analysts warn that the tariffs could disrupt trade flows worth billions, pushing exporters to seek new markets amid growing global tensions.
The controversy has sparked heated debates, with some questioning Modi’s foreign policy approach, while others see it as a test of India’s economic resilience. As the government navigates this crisis, the “MAHA headache” looms large, challenging the nation’s ability to balance strategic autonomy with international trade dynamics in an increasingly protectionist world.
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