Congress leader Shashi Tharoor has strongly criticized the United States for imposing an additional 25% tariff on Indian goods, calling it a "double standard" and warning of potentially unaffordable prices for American consumers. The tariff, levied by US President Donald Trump, is in response to India's continued oil trade with Russia.
Tharoor expressed his concerns that the increased tariffs, bringing the total to 50% for many Indian goods, would significantly impact India's exports to the American market. He highlighted the disadvantage this creates for Indian businesses compared to competitors with lower tariff regimes. He specifically mentioned countries like Vietnam, Indonesia, the Philippines, Bangladesh, and Pakistan, which he says currently enjoy lower tariffs than India. Tharoor fears that American consumers will opt for cheaper goods from these nations over Indian products.
Tharoor emphasized the need for India to diversify its export markets urgently. He pointed to the recently established Free Trade Agreement (FTA) with the UK and ongoing discussions with the EU as potential avenues for expanding trade relationships. However, he acknowledged that in the short term, the US tariff hike is a significant blow to Indian exports. He also suggested that India may be compelled to consider retaliatory measures, including imposing reciprocal tariffs on American exports. "We will have to learn our lessons from this experience," he stated.
The Ministry of External Affairs (MEA) has also strongly reacted to the US decision, calling the move "unfair, unjustified, and unreasonable". The MEA reiterated India's position that its oil imports are driven by market factors and are essential for ensuring the energy security of 1.4 billion people. The ministry emphasized that India is not alone in importing Russian oil and that many other countries are taking similar actions in their national interest. The MEA declared that India would take "all actions necessary to protect its national interests".
Shashi Tharoor pointed out the "double standard" in the US approach, noting that China imports far more Russian oil than India and has received a 90-day waiver on similar energy-related restrictions. He questioned the fairness and intent of the Trump administration, especially considering the traditionally strong relationship between the two countries.
The additional tariffs are scheduled to take effect 21 days from August 6, 2025. Experts suggest that this timeline leaves room for potential trade negotiations and talks between the two countries. However, the Indian government has maintained a firm stance, asserting that it will not be threatened by pressure tactics regarding its foreign policy.
