Image Credit: X account @ShashiTharoor
Tharoor Warns US Tariffs Could ‘Destroy’ India‑US Trade
Senior Congress MP Shashi Tharoor called the U.S. decision to impose a 25% tariff plus a penalty on transactions involving Russian oil or arms a “very serious matter” for India. He warned that the effective trade duty could climb as high as 35–45%, or, if a 100% penalty is applied, it could virtually destroy India’s trade ties with the U.S.
Economic Impact Highlighted
Tharoor stressed that the United States is a critical export destination for India, accounting for export revenues of around $87–90 billion USD. He cautioned that such high duties could shave off up to 0.5% of India’s GDP if negotiations do not succeed. He urged Indian trade negotiators not to yield under unreasonable U.S. demands.
India Has Strategic Alternatives
He emphasized that India is not overly dependent on the U.S. market and can pivot to other global partners, including the European Union and the United Kingdom. “If America becomes completely unreasonable, we have the strength of a robust domestic market and other trading relationships,” he said, calling for diversification and support for negotiators.
Tariff Balance and Fairness in Trade
Tharoor compared average Indian tariffs on American imports at around 17%, which he said are fair and justified. He pointed out that many U.S. products are not priced competitively in India, and that Ottawa must consider how its demands affect Indian livelihoods and needs.
Political Backdrop of the Remarks
His warning arrived amid heated domestic debate over President Trump’s 25% tariff on Indian goods, announced on July 30, citing India’s trade barriers and ties with Russia in energy and defense. Opposition leaders used the moment to criticize the Indian government for what they see as weak response or lack of readiness.
