As the United States’ 25% tariff on Indian goods came into effect, Congress MP Shashi Tharoor strongly criticised the move, calling the demands “completely unreasonable” and cautioning against giving in during ongoing trade negotiations. Speaking to reporters outside Parliament on Thursday, the Thiruvananthapuram MP stressed that India must prioritise its national interests while engaging in talks with Washington.
Tharoor warned that the penalties linked to India’s oil and gas purchases from Russia could potentially escalate to 35% or even 45%, severely damaging India’s trade prospects. “If you are going to talk about 100% penalty, then you are going to destroy our trade,” he said, while adding that the move may still be a bargaining tactic amid ongoing negotiations.
Trade Talks in Focus as Indian Economy Faces Potential Hit
Highlighting the importance of the US as a trading partner, Shashi Tharoor stated, “America is a very big market for us. Our exports alone are 87-90 billion dollars. If there is a dramatic drop, then it will hurt us. From estimates already coming, we may end up losing half a percent of our GDP.”
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Tharoor maintained that India’s average tariff of 17% was not unreasonable and said the US must evaluate the competitiveness of its own goods. “Most of the things they want to sell us as manufactured goods are cheaper from other supplies. Everyone will buy what they can afford to buy,” he said.
With over 700 million Indians reliant on agriculture, Tharoor insisted that India cannot compromise the livelihoods of its citizens to satisfy American demands. “America has to understand our needs as well,” he said, urging Indian negotiators to show limited flexibility but avoid yielding under pressure.
“I wish our negotiators good luck and good courage, because we can’t afford to buckle under. We have to keep our national interests as number one,” he concluded.
