Congress MP Shashi Tharoor on Wednesday alleged that the United States’ decision to impose an additional 25% tariff on Indian goods was politically motivated, hinting at a “hidden message” behind the move. The penalty, which the Trump administration said was a response to India’s continued imports of Russian oil, drew sharp criticism from the Congress leader who accused Washington of applying double standards in dealing with India and China.
“It will have an impact because we have trade of about $90 billion. If things will get costly by 50 per cent then people will also think before purchasing them, buyers will also think why should they buy Indian things?... If they do this, we should also impose a 50% tariff on American exports... It is not that any country can threaten us like this... ” Tharoor told reporters outside Parliament, speaking in Hindi. “If our competitors—Vietnam, Indonesia, Pakistan, Bangladesh, China—will sell products at a lower cost, it will have an impact. The additional 25 per cent tariff has been added on the pretext that we are buying oil, petroleum products from Russia. However, China is purchasing almost double, and they have been given 90 days, while India has been given just three weeks. There seems to be some other hidden message from Washington.”
Tharoor, a former union minister and diplomat, said India must respond assertively to the unilateral tariff hikes. “Our average tariffs on American goods are 17%. Why should we stop at 17%? We should also raise it to 50%... We need to ask them, do they not value our relationship? If India doesn't matter to them, they should also not matter to us,” he said.
He also appealed to the Indian diaspora in the United States to urge their government to adopt a more balanced approach, citing former US ambassador and Republican presidential hopeful Nikki Haley’s recent statement. Haley recently told Trump to prioritise the relationship with India over China.
The comments came hours after Congress president Mallikarjun Kharge held Prime Minister Narendra Modi responsible for the trade standoff, blaming his “disastrously dithering diplomacy” for the deteriorating ties with Washington.
In a strongly worded response, PM Modi, without naming the US or mentioning the tariffs, reaffirmed his government’s stand on protecting domestic interests. “The interest of farmers is our top priority. India will never compromise with the interests of its farmers, livestock holders, and fishermen. And I know that I will have to pay a huge price for this personally, but I am ready. India is ready, for the sake of the country's farmers, fishermen and livestock holders,” the Prime Minister said.
The Trump administration’s surprise announcement of additional tariffs comes at a time when trade talks between the two countries remain stalled. A key sticking point has been India’s refusal to open up key sectors, especially agriculture, to American exports, citing the need to protect domestic livelihoods.
India has consistently defended its oil imports from Russia, asserting that it was a matter of energy security.