Congress MP warns against yielding to US pressure as new tariffs threaten India’s exports and economy
Key Highlights:
- Shashi Tharoor calls US tariffs “completely unreasonable” amid ongoing trade negotiations.
- Says India must prioritize national interest and not buckle under external pressure.
- New tariffs could impact India’s GDP and major exports to the US market.
- Warns that targeting India could derail months of bilateral trade talks.
India Should Not Yield to US Trade Pressure, Says Tharoor
Congress MP Shashi Tharoor has strongly criticized the United States’ decision to impose a 25% additional import duty on Indian goods, calling the move “completely unreasonable” while trade negotiations between the two countries are still ongoing.
Speaking to reporters outside Parliament on Thursday, Tharoor emphasized that India should maintain its position and exercise limited flexibility, but not give in to unfair demands.
“This appears to be more of a bargaining tactic,” Tharoor said. “But if it materializes, it will seriously damage our trade and economic interests.”
US Tariffs Could Hit Indian Economy and Exports
- India’s exports to the US are valued at around $87–90 billion annually.
- A steep tariff hike could lead to a significant decline in exports.
- Potential GDP impact: Tharoor warned India could lose up to 0.5% of GDP due to these duties.
India’s Position: Trade Must Serve National Interest
Tharoor, who represents Thiruvananthapuram in the Lok Sabha, pointed out that India has 700 million citizens dependent on agriculture, and cannot compromise their interests for external pressure.
“We cannot risk the livelihood of our farmers just to make America happy,” he said.
He further noted that India’s average import tariff stands at 17%, which he considers reasonable in comparison to US expectations.
Criticism of Trump’s Trade Strategy
The Congress MP criticized US President Donald Trump’s aggressive stance, saying:
“Trump thinks huge markets like India will automatically buy American goods. But price competitiveness matters. Many of their manufactured items are more expensive than alternatives.”
Earlier this year, Tharoor also condemned Trump’s threats of imposing 100% tariffs on BRICS nations if they moved away from the US dollar in trade—a threat he labeled as “empty.”
Global Reactions and Strategic Fallout
- Trump’s surprise announcement comes as trade talks are still ongoing.
- The move is seen as a pressure tactic following the US securing favorable trade deals with Japan, UK, and EU.
- The US President went so far as to describe India’s trade policies as “strenuous and obnoxious” on social media.
India’s Official Response
The Indian government has said it is analyzing the implications of the US decision and is prepared to take all necessary steps to “secure our national interest.”
Conclusion: A Call for Strategic Resolve
Shashi Tharoor’s statement underscores the need for India to maintain a firm, balanced, and interest-driven approach in global trade talks.
“Our negotiators must stay strong,” Tharoor concluded. “We simply cannot afford to buckle under US pressure.”
Also Read : U.S. Announces 25% Tariff on Indian Exports — India’s Official Reaction and Impact