Photo: NDTV
New Delhi: Congress MP Shashi Tharoor has strongly criticized the US government's decision to impose an additional 25% import duty on Indian goods, calling it “completely unreasonable” and warning that it could severely harm India’s economy. Speaking to reporters outside Parliament, Tharoor said the move—announced just ahead of its implementation—was a damaging step that threatens ongoing trade negotiations between the two countries.
The
penalties, reportedly in response to India’s purchases of oil and defense
equipment from Russia, could go as high as 35% or even 45%, Tharoor warned. He
added that if implemented fully, the tariff hike could cause a dramatic drop in
Indian exports, which currently total around $87-90 billion to the US,
potentially shaving off half a percent from India’s GDP.
Tharoor
emphasized that India cannot sacrifice the livelihoods of its 700 million
agricultural workers to appease the US. He pointed out that India's average tariff
rate of 17% is reasonable and that American goods are often not competitively
priced in the Indian market. He urged the US to understand India's domestic
needs rather than pressure the country through aggressive trade tactics.
Reiterating his support for India's negotiators, Tharoor said flexibility in talks is acceptable to a point, but national interest must remain the top priority. He expressed concern that such tariff moves, especially as talks continue, could destabilize global trade and set a dangerous precedent for future relations.