Shashi Tharoor's ‘destroy’ warning after Donald Trump '25% US tariff' bomb on India

By Admin

01 Aug, 2025

In a dramatic escalation of trade tensions, former U.S. President Donald Trump announced a 25% tariff on all Indian exports to the United States, effective August 1. He also warned of additional penalties for India’s continued oil purchases from Russia. This abrupt policy shift has rattled Indian policymakers and prompted strong reactions from political leaders, notably Congress MP Shashi Tharoor.

A “Very Serious Matter” That Could Damage Indian Trade

Calling it a “very serious matter for us,” Shashi Tharoor didn’t mince words. “A 25% tariff, plus an unspecified penalty for our oil and gas purchases from Russia, could push the total duty up to 35-45%. There’s even talk of a 100% penalty, which will destroy our trade with America,” he said. According to Tharoor, such a sharp hike could severely damage India’s exports, given the U.S. is one of its biggest markets.

Tharoor: “America Must Understand Our Needs Too”

Tharoor also underlined the importance of fair and balanced negotiations. “If their demands are completely unreasonable, our negotiators have every right to resist,” he said, pointing out that Indian tariffs on American goods average around 17%, which are not unreasonably high. He further stated, “American goods are not priced competitively enough to sell in the Indian market.”

The Congress MP stressed the need for the U.S. to factor in India’s domestic economic realities while pushing its trade agenda. "America has to understand our needs as well," he added.

India’s Options Are Open

Tharoor struck a defiant tone, asserting that India is not without alternatives. “If we can't compete in America, we may have to diversify our markets outside of America,” he said, highlighting India’s ongoing trade negotiations with the EU, the UK, and other nations. “We are not a totally export-dependent economy like China. We have a strong domestic market,” Tharoor reminded.

He urged strong support for Indian negotiators and left open the possibility of walking away from the U.S. deal if terms are unfair.

Chidambaram’s Veiled Dig at PM Modi

Adding to the political pushback, former Finance Minister P. Chidambaram took a veiled jab at Prime Minister Modi. He called the move a “big blow” to India’s trade with the U.S. and criticized it as a “clear violation” of World Trade Organization (WTO) rules. “Dosti is no substitute for diplomacy and painstaking negotiations,” he wrote in a post on X.

Trump's Justification: High Indian Tariffs & Russia Ties

In his post on Truth Social, Donald Trump defended his decision by accusing India of maintaining “one of the highest tariffs in the world” and having “obnoxious non-monetary trade barriers.” He also criticized India’s continued military and energy trade with Russia, adding, “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting August 1st.”

India Responds: “We’ve Taken Note”

In response, the Indian government issued a cautious statement, saying it has “taken note” of Trump’s comments. “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,” it said.

Conclusion: The Road Ahead Is Uncertain

Trump’s tariff threat has thrown a wrench into what were already complex trade negotiations. While the Indian government studies the implications and negotiates behind closed doors, political leaders like Shashi Tharoor and P. Chidambaram are calling for resilience, strategic diversification, and protection of national interest. Whether this tariff bomb is a negotiating tactic or a long-term policy shift remains to be seen but one thing is certain: India must be ready for a new trade equation.