Shashi Tharoor slammed Donald Trump’s new tariff on Indian imports linked to Russian oil trade, urging India to retaliate by raising duties on US goods to 50%, and warning against accepting economic threats without resistance.
Congress MP Shashi Tharoor has strongly reacted to US President Donald Trump’s decision to impose an additional 25% tariff on Indian imports for buying oil from Russia. Speaking on the matter, Tharoor said this move will hurt India’s trade and must be met with equal action. “If everything from India becomes 50% costlier, why would Americans buy Indian goods?” he asked, warning that India must respond with equal tariffs.
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Tharoor also said that India should not bow to threats. “Our average tariff on American goods is 17%. Why stop there? We should raise it to 50%,” he said. He questioned if the US truly values its relationship with India. “If India doesn’t matter to them, they should also not matter to us,” he said, urging a strong and clear stand in response.
Trump’s 50% Tariff on Indian Imports Triggers Economic Concerns
US President Donald Trump on Wednesday, August 6, announced an extra 25% tariff on imports from India, raising the total tariff to 50%. This action, linked to India’s continued oil trade with Russia, is likely to hurt Indian exports badly. Sectors such as garments, electronics, auto parts, precious stones, and MSMEs are expected to be hit the hardest. Indian exporters fear that the cost of Indian goods in the US will now be too high for buyers, leading to cancelled orders and job losses.
Economists estimate that this new tariff could reduce India’s GDP growth by 0.2% to 0.4% in the next financial year. Sonal Badhan from Bank of Baroda said this impact depends on whether India and the US can agree on lower rates soon. She warned that if negotiations fail, India’s expected growth of 6.4-6.6% could face serious downside risks. Some relief may come as a few items like certain minerals and pharma chemicals are excluded from the new order.
Trade experts and industry groups have called the move unnecessary and harmful. Ajay Bagga said such a high tariff makes trade impossible, while FIEO President S C Ralhan warned that 55% of India’s exports to the US are now affected. Many MSMEs cannot afford these added costs and risk losing buyers. India has responded by saying it will continue buying oil based on its own national interest, while talks with the US are likely in the coming weeks.
(With ANI inputs)