Shashi Tharoor Slams Trump’s 25% Tariff Bomb, Warns Of Potential Financial Fallout


New Delhi: Congress MP Shashi Tharoor on Thursday described US President Donald Trump’s proposed 25% tariff on Indian items as a “very critical” subject, warning that it might “destroy” India’s commerce relationship with America.

Reacting to the US President Donald Trump’s latest lifeless economic system comment and that India will face extra penalties for buying oil from Russia, Tharoor cautioned in opposition to the imposition of heavy penalties by Washington. “It’s a really critical matter for us,” he mentioned, noting that India faces a 25% tariff, “plus an unspecified penalty for our purchasing oil and fuel from Russia,” which Tharoor warned “might take it as much as 35–45%.” He added that “there’s even speak of a 100% penalty, which can destroy our commerce with America.”

Tharoor emphasised that commerce negotiations are nonetheless ongoing and expressed hope that the tariff limitations could also be scaled down by means of diplomatic engagement. Nevertheless, he additionally defended India’s stance, saying, “If their calls for are utterly unreasonable, our negotiators have each proper to withstand… America has to know our wants as properly.”

The Congress chief rejected criticisms of India’s tariff insurance policies, arguing that they’re average by international requirements. “Our tariffs on America will not be that unreasonable. It is about 17% common,” information company ANI quoted Shashi Tharoor as saying. He additional contended that American items battle to compete within the Indian market, not due to tariff limitations, however as a result of “American items will not be priced competitively sufficient to promote within the Indian market.”

Tharoor’s remarks come amid rising geopolitical tensions following the Russia–Ukraine battle and ongoing discussions between India and the US over commerce phrases, vitality safety, and sanctions coverage. The US has repeatedly urged India to cut back its dependence on Russian vitality, whereas India has maintained its strategic autonomy in vitality sourcing.

Former Union House Minister and senior Congress chief P. Chidambaram has taken a veiled swipe at Prime Minister Narendra Modi, criticizing the US’ determination to impose a 25% tariff on all Indian exports and extra penalties for importing Russian oil. He known as the transfer a “huge blow” to India’s commerce with the U.S.

Chidambaram additionally contended that the brand new commerce measures represent “a transparent violation” of World Commerce Group (WTO) guidelines.

In a submit on X, he mentioned, “The 25 per cent tariff on all Indian exports to the US PLUS penalty for purchasing Russian oil is an enormous blow to India’s commerce with the U.S. ‘Dosti’ isn’t any substitute for diplomacy and painstaking negotiations. The tariff imposed by the U.S. is a transparent violation of the WTO guidelines.”

The response got here after US President Donald Trump, in a submit on Fact Social, declared {that a} 25% tariff on Indian items would take impact from August 1. Trump additionally warned of additional penalties associated to India’s vitality ties with Russia.

“Bear in mind, whereas India is our good friend, now we have, over time, performed comparatively little enterprise with them as a result of their Tariffs are far too excessive, among the many highest within the World, they usually have probably the most strenuous and obnoxious non-monetary Commerce Boundaries of any Nation. Additionally, they’ve at all times purchased a overwhelming majority of their navy gear from Russia, and are Russia’s largest purchaser of ENERGY, together with China, at a time when everybody needs Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” Trump posted.

In response to the announcement, the Indian authorities said it has “taken observe” of Trump’s remarks on bilateral commerce and is presently assessing the implications of the proposed measures.