Shashi Tharoor Slams US Tariffs on Indian Goods, Calls Move 'Completely Unreasonable'

US President Donald Trump’s decision to impose a 25% import duty and penalty on goods from India has been labelled “completely unreasonable” by Congress MP Shashi Tharoor said on Thursday, even as trade negotiations continue. He added that India could show limited flexibility during talks but must not give in to pressure at the cost of its national interests.

Tharoor, MP from Thiruvananthapuram, made these remarks to reporters outside Parliament as the US tariff announcement impacted Indian markets and the rupee just one day before it takes effect. He said that this 25 per cent tariff singles out India more harshly than other major trading partners and could undermine months of ongoing discussions. The penalty is linked to India’s purchase of oil and defence equipment from Russia.

Penalty Could Reach 35–45%, Risk Destroying Trade

Tharoor explained that the US had specified additional duties on India’s purchases of oil and gas from Russia, which might even reach 35%–45%. He warned, “If the penalty becomes 100%, it could destroy our trade.” Acknowledging that negotiations are still underway, he said the move might be a bargaining tactic. “If that doesn’t change, it will definitely damage our trade,” he added.

Major Market at Stake, Risk to GDP

Highlighting the scale of the US market for India's goods, Tharoor said exports to the US are worth $87–90 billion annually. If trade slows dramatically, it could hurt India’s economy, potentially shaving 0.5% off GDP, based on early estimates. He stressed that US demands are "completely unreasonable" and defended India's negotiators’ right to resist. “We have around 700 million farmers depending on agriculture. We cannot jeopardise their livelihood just to please America.” He emphasised that the US should also acknowledge India’s needs.

India’s Tariffs Not Unfair, Indian Consumers Choose Cheapest Goods

Tharoor addressed complaints about India’s tariffs on US goods—on average around 17%. He said American goods are often not priced competitively enough to sell in India. “If Mr Trump thinks US manufacturers can flood our market, they need to check their prices,” he said. He added that buyers will naturally choose what they can afford.

He reiterated that the US stance is not entirely reasonable. “India can be flexible, but only up to a point. Our national interest comes first.” Tharoor closed by wishing Indian negotiators "good luck and courage," reasserting they must not yield under pressure. He has previously criticised Trump’s threat earlier this year to impose a 100% tariff on BRICS nations if they reduce reliance on the dollar. He called it an “empty threat”, warning that such tariffs adversely affect global trade.

Trump’s tariff declaration startled observers, especially because talks were ongoing. Many see it as a tactic to force New Delhi into concessions—similar pressure seen in deals with Japan, the United Kingdom, and the European Union. In a social media post, Trump called India’s trade policies “most strenuous and obnoxious”. India responded that it is evaluating the move carefully and will take all steps to protect its national interest.