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Shashi Tharoor Warns Trump's Tariff Hike May ‘Destroy’ India-US Trade

Arzoo Yadav

Jul 31, 2025, 05:10 PM | Updated 05:10 PM IST


Congress leader Shashi Tharoor (File Photo)
Congress leader Shashi Tharoor (File Photo)

Congress MP Shashi Tharoor on Thursday (31 July) warned that US President Donald Trump’s decision to impose a 25 per cent tariff on Indian exports could “destroy” India’s trade with America, reported Hindustan Times.

He also flagged a potential penalty for India's oil and gas purchases from Russia, which could raise the effective tariff to 35–45 per cent, or even 100 per cent in extreme scenarios.

“It’s a very serious matter for us... 25, plus an unspecified penalty for our buying oil and gas from Russia, it could take it up to 35-45... There's even talk of a 100 per cent penalty, which will destroy our trade with America,” Tharoor was quoted as saying by ANI.

Tharoor stressed that trade talks are ongoing, and expressed hope the tariff could still be reduced.

“If it doesn't, it will damage our exports, because America is a very big market for us," he said.

He also reminded the Trump administration to consider India's perspective.

“America has to understand our needs as well. Our tariffs on America are not that unreasonable. It's about 17 per cent average. American goods are not priced competitively enough to sell in the Indian market,” he added.

Former finance minister P Chidambaram criticised the move, calling it a “big blow” to India-US trade and a “clear violation” of WTO rules.

”'Dosti' is no substitute for diplomacy and painstaking negotiations,” he posted on X.

Trump, on Truth Social, claimed India has “obnoxious” trade barriers and remains one of Russia’s biggest energy and arms customers.

India responded by saying it had “taken note” of the announcement and remains committed to a balanced bilateral trade agreement.

Also Read: Delhi To Get Rs 821 Crore From Centre For Key Infrastructure Projects


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