Rahul Gandhi Attacks PM Modi Amid US Tariff Ruling and Trade Deal

In a significant development impacting global trade and India's political discourse, the US Supreme Court on February 20, 2026, delivered a landmark 6-3 decision invalidating broad tariffs imposed by former US President Donald Trump under the International Emergency Economic Powers Act (IEEPA) of 1977. The court ruled that the President exceeded his statutory authority by using emergency powers to levy what are, constitutionally, taxes, emphasizing that tariff authority fundamentally resides with Congress. This decision, authored by Chief Justice John Roberts, is seen as a major legal setback to Trump's trade policy. Reacting sharply to the US Supreme Court's verdict, Congress leader Rahul Gandhi on February 21, 2026, launched a scathing attack on Prime Minister Narendra Modi. In a post on X (formerly Twitter), Gandhi reiterated his accusation that PM Modi was 'compromised' and asserted that his 'betrayal now stands exposed.' He further claimed that the Prime Minister would be unable to renegotiate the India-US interim trade agreement and would 'surrender again.' The Supreme Court's ruling comes shortly after the United States and India had agreed on a framework for an interim trade deal earlier in February 2026. This deal, announced in a joint statement, involved commitments from India to eliminate or reduce tariffs on a range of US industrial and agricultural products, and a plan to purchase over $500 billion worth of US goods over five years. Crucially, the agreement also saw the US agree to lower its reciprocal tariff on India from 25% to 18%, and remove an additional 25% punitive tariff previously imposed on India for its purchases of Russian oil, in recognition of India's commitment to stop such purchases. Following the Supreme Court's decision, former President Donald Trump, visibly angered, called the ruling a 'terrible decision' and announced he would sign an executive order to impose a new 10% worldwide tariff under Section 122 of the Trade Act of 1974, effective February 24, 2026. This new tariff is temporary, set for a period of 150 days. Despite the court's invalidation of his earlier tariffs, Trump maintained that the India-US trade deal stands and India would continue to pay 18% tariffs, while the US would pay 0%. However, the White House later clarified that trading partners, including India, that had finalized tariff agreements with the Trump administration would now face a 10% duty, implying an effective tariff rate of 10% for Indian goods from February 24, 2026. Some interpretations suggested the effective tariff for India could be 13.5% (3.5% pre-liberalization duty plus the new 10%). The Congress party in India, through leaders like Rahul Gandhi and General Secretary Jairam Ramesh, questioned the Modi government's haste in finalizing the trade deal without awaiting the US Supreme Court's judgment on the tariffs. Ramesh claimed that if the Modi government had waited, Indian farmers and sovereignty would have been better protected, suggesting the deal was a 'one-sided surrender' driven by the Prime Minister's 'desperation.' The Congress criticized various aspects of the interim agreement, including zero tariffs on several American exports that could open India's agriculture to US goods, the commitment to import $500 billion worth of US products, a halt on Russian oil purchases impacting India's energy security, and digital tax concessions. Union Minister Pralhad Joshi stated that the Indian government would study the US Supreme Court ruling before providing an official response, indicating the matter falls under the commerce and external affairs ministries. The unfolding situation highlights the complex interplay between international trade law, domestic political dynamics, and bilateral relations between India and the United States. This news is highly relevant for an Indian audience as it directly impacts India's trade relations with a major global power, the prices of imported goods, agricultural policies, and the political narrative surrounding the government's economic and foreign policy decisions. The Supreme Court's decision not only shifts the dynamics of US trade policy but also redefines the authority of the US presidency in imposing tariffs, a development with widespread implications for global commerce.

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