Shashi Tharoor Raises Concerns Over US Tariffs, Says Trump’s Decision Could Severely Damage India-US Trade
In a sharp reaction to former US President Donald Trump’s announcement of a 25% tariff on Indian exports, senior Congress MP Shashi Tharoor on Thursday expressed grave concern, calling it a matter of “serious economic consequence” for India.
The imposition of such high duties, combined with proposed penalties over India’s purchase of Russian oil and gas, could push the effective tariff range to as high as 35%–45%, Tharoor warned.
“It is indeed a serious issue for us,” Tharoor said, in comments reported by news agency ANI. “A 25% tariff, plus potential penalties over our energy transactions with Russia—possibly even rising to **100% in extreme cases—**would devastate our trade relations with the United States.
Negotiations are ongoing, and we hope they yield a more balanced outcome. However, if these measures are implemented as announced, it will severely damage our export-driven sectors, particularly as the US is one of our largest markets.”
Tharoor stressed that while the US government is entitled to protect its interests, it must also consider India’s legitimate concerns. “If Washington’s demands are excessive, our negotiators have every right to stand their ground,” he added.
“India’s average tariff rate is around 17%—not excessively high. The real problem is that American products often lack competitive pricing in the Indian market.”
He described the trade dialogue with the US as part of a broader, multi-pronged international effort by India. “The United States is not our only trading partner.
We’ve already finalized a trade agreement with the United Kingdom and are in active negotiations with the European Union and several other nations. If American terms are completely unreasonable, India has the strategic flexibility to shift its focus elsewhere.”
Highlighting the strength of India’s domestic consumption-driven economy, Tharoor emphasized that India, unlike China, is not overly reliant on exports. “We must back our negotiating team to secure a fair deal. But if a satisfactory agreement isn’t on the table, India must not hesitate to walk away.”
In a related development, senior Congress leader and former Union Finance Minister P. Chidambaram took a veiled swipe at Prime Minister Narendra Modi.
He termed Trump’s tariff decision, coupled with penalties on oil imports from Russia, as a “major setback” to India’s international trade and diplomatic credibility.
In a post on social media platform X, Chidambaram wrote:
“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’ (friendship) is no substitute for diplomacy and painstaking negotiations. The tariff imposed by the U.S. is a clear violation of WTO rules.”
The controversy stems from a statement Trump issued on his platform Truth Social, where he justified the tariffs by accusing India of maintaining excessively high import duties and non-monetary trade barriers. Trump also criticised India’s continued military and energy partnerships with Russia amidst the ongoing war in Ukraine.
“India is our friend, but their tariffs are among the highest in the world. Their non-monetary trade barriers are extremely burdensome. They buy a majority of their arms and energy from Russia—this is not acceptable. Therefore, effective August 1st, India will be subject to a 25% tariff, plus additional penalties. Thank you, and MAGA!” Trump declared.
Reacting to Trump’s post, the Indian government issued a cautious response, indicating it was closely monitoring the situation.
“India has taken note of the former US President’s remarks and is evaluating the broader implications for our trade policies. Over the past several months, India and the United States have been working towards a fair, balanced, and mutually beneficial trade agreement. We continue to remain committed to that goal,” the official statement said.
