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Home>>India>>‘India Should Retaliate With 50% Tariff On American Goods’: Shashi Tharoor On Trump’s Double Tariff Slap
India

‘India Should Retaliate With 50% Tariff On American Goods’: Shashi Tharoor On Trump’s Double Tariff Slap

international media news
August 8, 2025 106 Views0

Congress MP Shashi Tharoor has strongly criticized US President Donald Trump’s latest decision to impose an additional 25% tariff on Indian goods, calling it a direct economic penalty for New Delhi’s continued purchase of Russian crude oil. The hike brings the total tariff on Indian exports to 50%, threatening to derail India-US trade relations worth $90 billion.

 

“It will definitely have an impact because we have a trade of $90 billion with them, and if everything becomes 50% more expensive, buyers will also think, why should they buy Indian things?” Tharoor said, speaking to the media.

 
 

In a sharp counter to Washington’s move, he suggested that India should consider imposing reciprocal tariffs on US exports.

“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. Our average tariffs on American goods are 17%. Why should we stop at 17%? We should also raise it to 50%,” he asserted. “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.”

The US administration’s justification for the steep tariff hike is India’s ongoing energy trade with Russia, despite Western efforts to isolate Moscow economically. India has repeatedly defended its stance, arguing that purchasing Russian oil at discounted rates is essential for the energy security of 1.4 billion people.

Describing the US action as “unfair, unjustified, and unreasonable”, India’s Ministry of External Affairs called it “extremely unfortunate” that Washington had chosen to target India for decisions that several other nations, including China, continue to make in their own interest.

When asked whether India should continue sourcing oil from Moscow despite pressure from Washington, Tharoor emphasized market logic and national interest:

“We need to look at the market and decide where to buy oil and gas from. If Russian oil is a lot cheaper than the rates offered by other countries, why can’t we profit from it? We need oil and gas for development activities,” he said.

The tariff escalation has further strained India-US trade talks, which had already stalled over disagreements on market access. India had resisted US demands to open up sectors like agriculture, citing the need to protect domestic farmers.

Sending a clear message after Trump’s tariff announcement, Prime Minister Narendra Modi reaffirmed his government’s commitment to farmers: “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,” PM Modi said during an event in Delhi.

Echoing this sentiment, Tharoor acknowledged the importance of protecting India’s agriculture sector: “A massive section of India’s population is linked to agriculture. No matter whose government it is, Modi ji’s or ours, we need to stand with the farmers. Our true friends abroad will understand this, but those who are not ready to understand, who do not value our relationship as much as we value it, we need to look for other friends.”

With tensions escalating, both sides appear to be digging in, signaling a rough road ahead for what has long been considered a key strategic partnership.

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