In response to recent remarks by US President Donald Trump, who proposed a 25 per cent tariff and potential penalties on Indian goods for its continued purchase of oil and gas from Russia, Congress Member Parliament (MP) Shashi Tharoor has voiced strong concern, calling it a 'very serious matter' for India’s economy and global trade relations.
Penalties could reach up to 100 per cent, warns Tharoor
Tharoor highlighted that the tariff may not stop at 25 per cent, but could increase significantly. "It could go up to 35–45 per cent when penalties are added. There’s even talk of a 100% penalty, which would destroy our trade with America," he cautioned.
Such a drastic measure, if implemented, would deal a severe blow to India's exports, given that the United States is one of India's largest trading partners, accounting for nearly $87–90 billion in annual exports.
Trade talks still underway
While the announcement has raised alarms, Tharoor pointed out that the move might be a negotiating tactic as ongoing trade talks between the two nations continue.
“The negotiations are still going on, and there is a possibility this may come down. But if it doesn’t, it will damage our exports significantly,” he said.
India’s right to push back
Tharoor insisted that Indian negotiators should not bow to unreasonable demands and must assert the country’s economic interests.
“If their demands are totally unreasonable, our negotiators have every right to resist. America must also understand India’s needs,” he asserted.
Tariffs and trade imbalance: India's perspective
Responding to US criticism over India’s tariff structure, Tharoor defended the country’s average tariffs on American goods, stating they are around 17% and not particularly excessive.
“The real issue is that American goods are often not competitively priced enough to sell in the Indian market,” he added, pushing back against the narrative that India is unfairly restricting US imports.
Balancing geopolitics and economic sovereignty
Tharoor’s remarks underscore the delicate balance India must maintain between its strategic partnerships and economic sovereignty, especially amid geopolitical tensions involving Russia and the West.
As trade negotiations continue, India’s leadership will face mounting pressure to safeguard national interests while preserving crucial bilateral ties with the United States.
