Congress MP Shashi Tharoor on Thursday described US President Donald Trump’s proposed 25% tariff on Indian goods as a “very serious” issue, warning that it could “destroy” India’s trade relationship with America.
Reacting to the US President Donald Trump’s recent dead economy remark and that India will face additional penalties for purchasing oil from Russia, Tharoor cautioned against the imposition of heavy penalties by Washington. “It’s a very serious matter for us,” he said, noting that India faces a 25% tariff, “plus an unspecified penalty for our buying oil and gas from Russia,” which Tharoor warned “could take it up to 35–45%.” He added that “there’s even talk of a 100% penalty, which will destroy our trade with America.”
Tharoor emphasized that trade negotiations are still ongoing and expressed hope that the tariff barriers may be scaled down through diplomatic engagement. However, he also defended India’s stance, saying, “If their demands are completely unreasonable, our negotiators have every right to resist… America has to understand our needs as well.”
The Congress leader rejected criticisms of India’s tariff policies, arguing that they are moderate by global standards. “Our tariffs on America are not that unreasonable. It’s about 17% average,” news agency ANI quoted Shashi Tharoor as saying. He further contended that American goods struggle to compete in the Indian market, not because of tariff barriers, but because “American goods are not priced competitively enough to sell in the Indian market.”
Tharoor’s remarks come amid growing geopolitical tensions following the Russia–Ukraine war and ongoing discussions between India and the United States over trade terms, energy security, and sanctions policy. The US has repeatedly urged India to reduce its dependence on Russian energy, while India has maintained its strategic autonomy in energy sourcing.
Former Union Home Minister and senior Congress leader P. Chidambaram has taken a veiled swipe at Prime Minister Narendra Modi, criticizing the United States’ decision to impose a 25% tariff on all Indian exports and additional penalties for importing Russian oil. He called the move a “big blow” to India’s trade with the U.S.
Chidambaram also contended that the new trade measures constitute “a clear violation” of World Trade Organization (WTO) rules.
In a post on X, he said, “The 25 per cent tariff on all Indian exports to the United States PLUS penalty for buying Russian oil is a big blow to India’s trade with the U.S. ‘Dosti’ is no substitute for diplomacy and painstaking negotiations. The tariff imposed by the U.S. is a clear violation of the WTO rules.”
The reaction came after US President Donald Trump, in a post on Truth Social, declared that a 25% tariff on Indian goods would take effect from August 1. Trump also warned of further penalties related to India’s energy ties with Russia.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants 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 government stated it has “taken note” of Trump’s remarks on bilateral trade and is currently assessing the implications of the proposed measures.
