Congress MP and erstwhile diplomat Shashi Tharoor reacted strongly to US President Donald Trump announcing an additional 25% tariff on Indian commodities as punishment for India’s continued oil purchases from Russia. Tharoor pointed out what he termed a hidden message behind the move, pointing out that China, which purchases almost double the amount of Russian oil, has been granted a 90-day waiver rather than India’s three weeks before the apparent enactment of the tariff. The 25% tariff went into effect on August 7, while sometime soon after that, another 25% will be added, bringing the total to 50%.
Speaking to journalists outside Parliament, Tharoor indicated that India could consider a retaliatory measure if the US did not change its mind in the three-week window. He went on to explain that India did not make threats but that the government of India should stand firm when required. Meanwhile, he added that India’s average tariff on imported goods from the US is 17%, which only makes Trump’s tariffs sound inflated and not really reciprocal.
Effects of Tariffs on India-US Trade and Diplomatic Relations
Tharoor cautioned that these fresh tariffs could considerably damage exports from India to America, which now add up to nearly $90 billion. A hike of 50% can make Indian goods rather less competitive when compared to nations such as Vietnam, Indonesia, Pakistan, Bangladesh and China. He further said that might cause some hesitation among American consumers while buying Indian products, affecting the country’s trade balance.
He asked the Indian diaspora in the US to stand up for fair treatment, quoting former US Ambassador Nikki Haley’s advice to Trump to give India precedence over China. Tharoor ended by stating that the Indian government needs to study the issue carefully and formulate a measured response, keeping in mind India’s strategic and economic interests.
ALSO READ:Shashi Tharoor Rejects Trump’s Dead Economy Claim, Backs India’s Growth
