31 July 2025 : Congress MP Shashi Tharoor on Thursday said the 25% tariff announced by US President Donald Trump on the Indian economy is a very “serious” matter that will “destroy” India’s trade with America.
“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% penalty, which will destroy our trade with America… The trade negotiations are underway, and there is a possibility that it may come down. If it doesn’t, it will damage our exports, because America is a very big market for us,” news agency ANI quoted Shashi Tharoor as saying.
The Congress leader also noted that the Trump administration has to take into consideration the “needs” of the Indian government as well.
“On the other hand, if their demands are completely unreasonable, our negotiators have every right to resist… America has to understand our needs as well. Our tariffs on America are not that unreasonable. It’s about 17% average. American goods are not priced competitively enough to sell in the Indian market,” he said.
Describing the India-US trade deal as a “challenging negotiation”, Tharoor said, “We are negotiating with many countries. The US is not the only negotiation. We have ongoing negotiations with the EU, we already concluded a deal with the UK, and we are talking with other countries also. If we can’t compete in America, we may have to diversify our markets outside of America. We are not out of options.
“If America is completely unreasonable with its demands, we have to move elsewhere. That is the strength of India; we are not a totally export-dependent economy like China. We have a good and strong domestic market. We must give strong support to our negotiators to find the best deal possible. If a good deal is not possible, we may have to walk away…”
Former Union home minister and senior Congress leader P Chidambaram took a veiled dig at Prime Minister Narendra Modi and said the 25 per cent tariff on all Indian exports to the United States and penalty for buying Russian oil is a “big blow” to India’s trade with the US.
Chidambaram also argued that they are “a clear violation” of the World Trade Organisation’s rules.
In a post on X, Chidambaram 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.”
Donald Trump, in a social media post on Truth Social, announced 25% tariffs on India starting August 1.
Trump also said India will face additional penalties for purchasing oil from 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.
India said it has “taken note” of Donald Trump’s statement on bilateral trade and the government is studying its implications.
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” the statement said.
Summary :
Shashi Tharoor called Trump’s 25% tariff plus proposed penalties “completely unreasonable,” warning a 100% penalty could devastate India–US exports and harm GDP.