NEW DELHI, July 31 — Reacting to US President Donald Trump’s announcement of a 25% tariff with penalties on Indian imports starting August 1, Congress leader and former diplomat Shashi Tharoor on Thursday described the move as a “bargaining tactic” and urged India to remain firm during negotiations.
“This is a very serious matter,” Tharoor told reporters outside Parliament, pointing to the US being India’s largest export market, with outbound trade estimated at $87–90 billion. “If their demands are totally unreasonable, then our negotiators have the right to resist,” he said.
Tharoor acknowledged that the proposed tariffs could be revised during the course of talks. “There is a possibility that in the course of negotiations, this may come down,” he said. However, he warned that if implemented as announced, the duties could cause severe damage to Indian exports.
“Early estimates suggest India could lose up to 0.5% of its GDP if it loses access to the US market,” he cautioned.
Calling for a measured but firm response, Tharoor said, “We cannot risk the livelihoods of 700 million Indians who depend on agriculture just to please America. America must understand our needs as well.”
He also defended India’s current tariff regime, stating, “India’s average tariff on American goods stands at about 17%, which is not excessive. American goods are not so competitively priced that they can flood the Indian market.”
Tharoor’s comments reflect growing concerns in India’s political circles over the potential economic fallout of Trump’s tariff decision, which some analysts see as part of broader trade pressures ahead of the US election season.
