Congress MP Shashi Tharoor voiced deep apprehension on Wednesday about the impact of rising US tariffs on Indian exports. His comments came just days after former US President Donald Trump announced an additional 25 percent duty on nations continuing business with Iran.
Tariff Disparity Puts India at Disadvantage
Tharoor, who chairs the parliamentary standing committee on foreign affairs, highlighted how Indian exporters already struggle to compete. He pointed out that while India faces a 25 percent tariff, competing Southeast Asian nations enjoy much lower rates.
"I have always been troubled about these tariffs," Tharoor told news agency ANI. "Even the initial 25 percent given to India created problems. Our rivals in Southeast Asia received tariffs between 15 and 19 percent."
He specifically mentioned countries like Vietnam, Thailand, Indonesia, Pakistan, and Bangladesh. These nations compete directly with India in labor-intensive export sectors.
Key Indian Export Sectors Affected
- Gems and jewellery
- Marine products and shrimp
- Leather goods
- Various manufactured items
Escalating Tariffs Create Crisis Situation
The situation has deteriorated significantly with additional sanctions-related tariffs. India already faces a 50 percent tariff combination from two previous measures.
The breakdown shows:
- 25 percent reciprocal tariff imposed earlier
- Another 25 percent linked to India's purchase of Russian crude oil
- Now a potential 25 percent more for Iranian sanctions
"Now you have 25 percent more for Russian sanctions, taking it to 50 percent," Tharoor explained. "If there are 25 percent more in Iranian sanctions, that reaches 75 percent. Let's face it - no Indian company will be viable exporting to America at 75 percent."
Pharmaceuticals May Be Only Exception
Tharoor noted that only non-sanctioned sectors might continue exporting. The pharmaceutical industry could potentially maintain its trade with the United States despite the escalating tariffs.
Urgent Need for Trade Agreement
The Congress leader emphasized the critical importance of concluding a bilateral trade agreement between India and the United States. He expressed hope that the newly appointed US ambassador would help bridge differences between the two governments.
"Tariff levels as high as 75 percent undermine the spirit of our strategic partnership," Tharoor argued. He stressed that India deserves treatment equal to close US allies to sustain meaningful trade relations.
Trump's Announcement Adds Pressure
Former President Donald Trump made his announcement on Truth Social amid rising tensions involving Iran. He described the measure as targeting countries that "continue to do business with Iran."
Trump declared the 25 percent tariff would apply to all commercial transactions with the United States. He called the order "final and conclusive" and said it would take effect immediately.
Timeline of Tariff Increases
India already faces a steep 50 percent tariff that took effect on August 27. A fresh 25 percent levy for trading with Iran would dramatically increase pressure on Indian goods exported to American markets.
The combined impact could make many Indian products prohibitively expensive for US consumers. This development threatens to disrupt longstanding trade patterns between the two nations.
