Congress MP Shashi Tharoor on Thursday issued a strong warning over the 25 per cent tariff imposed on Indian exports by US President Donald Trump, calling it a 'very serious matter' that could devastate India’s trade with the United States. Tharoor said the move, coupled with potential penalties for India’s continued oil and gas purchases from Russia, could raise the effective cost to 35-45 per cent—with even speculative concerns of a 100 per cent penalty, which he warned would 'destroy our trade with America.'
Speaking to mediapersons, Tharoor highlighted the seriousness of the development, stating, “It’s a very serious matter for us… There’s even talk of a 100 per cent penalty, which will destroy our trade with America. The trade negotiations are underway, and there is a possibility that it may come down. If it doesn’t, it will damage our exports, because America is a very big market for us.”
Tharoor also pointed out that the Trump administration must consider India’s needs, stating, “Our tariffs on America are not that unreasonable—it’s about 17 per cent on average. American goods are not competitively priced enough to sell in the Indian market. If their demands are completely unreasonable, our negotiators have every right to resist.”
He described the ongoing India-US trade deal as a “challenging negotiation” and noted that India has other global trade avenues, including ongoing talks with the European Union, and a concluded deal with the United Kingdom. “If America is completely unreasonable with its demands, we have to move elsewhere. That is the strength of India—we are not a totally export-dependent economy like China. We have a good and strong domestic market,” Tharoor said. He urged the government and the public to back India’s negotiators, saying, “We must give strong support to our negotiators to find the best deal possible. If a good deal is not possible, we may have to walk away.”
Meanwhile, former Union Finance Minister and senior Congress leader P Chidambaram also reacted sharply, calling the 25 per cent tariff and additional penalties 'a big blow' to India’s trade relationship with the US. In a post on X (formerly Twitter), Chidambaram stated, “The 25 per cent tariff on all Indian exports to the United States PLUS penalty for buying Russian oil is a big blow to India's trade with the U.S. ‘Dosti’ is no substitute for diplomacy and painstaking negotiations.” He further added that the US actions are a “clear violation” of World Trade Organisation (WTO) rules.
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President Trump, in a post on his social media platform Truth Social, justified the move by citing India’s 'high tariffs' and 'non-monetary trade barriers.' He also criticised India’s continued purchase of military equipment and energy from Russia. “India has always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!” Trump wrote.
“INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 pc, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st,” he declared.
In response, the Indian government said it has “taken note” of Trump’s statement and is currently studying its implications. In an official statement, the government said, “India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.”
The new tariffs and penalties have triggered a wave of political backlash in India, with the opposition highlighting what it calls the failure of Prime Minister Modi’s personalised diplomacy, while urging a firm response in the interest of Indian trade and sovereignty.
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