‘Bargaining tactic’: Tharoor over Trump’s tariff announcement, says India must remain firm

Terming it a “bargaining tactic", Congress leader and former diplomat Shashi Tharoor in reaction to US President Donald Trump’s announcement of a 25% tariff with penalty on Indian imports on Thursday said India should remain firm on its stance.

Terming it a “very serious matter" for India, Tharoor also had a word of caution saying that the US which is the major market for India with exports estimated at $87–90 billion, he said India must remain firm.

“If their demands are totally unreasonable, then our negotiators have the right to resist," he said, while talking to reporters outside the Parliament.

Tharoor’s reaction came a day after Trump announced that a 25% tariff will be imposed on Indian imports starting August 1, along with penalties.

“There is a possibility that in the course of negotiations, this may come down," he said.

However, the former diplomat warned that if the new tariffs remain in place, they could significantly damage India’s exports, pointing out that the US is one of India’s largest export markets, with outbound trade valued at around $87–90 billion. “If that is a dramatic drop, that will hurt us," he cautioned.

He added early estimates suggest India could lose up to half a per cent of its GDP without access to the US market.

He also insisted New Delhi must push back against any unreasonable demands from Washington.

Highlighting the sensitivities of India’s agricultural sector, he added, “We have about 700 million Indians who are dependent on agriculture. We cannot risk their livelihoods to make America happy. America has to understand our needs as well."

He also said India’s average tariff on American goods stands at about 17%, which he argued is not excessive.

“American goods are not priced that competitively that they can sell so much in the Indian market," he said.