Former Finance Minister and senior Congress leader P. Chidambaram has raised alarm over US President Donald Trump’s threat to initiate a tariff war with India, set to begin on April 2. Speaking in the Rajya Sabha on Thursday, Chidambaram called on India to unite with other global voices advocating for peace in trade relations, warning that a trade and tariff war could devastate the global economy, especially for developing nations.
Chidambaram termed tariffs as the “elephant in the room” and claimed that Trump had informed Prime Minister Narendra Modi of his intention to impose reciprocal tariffs. The former finance minister questioned whether the recent cuts in customs duties announced by the Modi government in the 2025-26 Union Budget were a genuine policy shift or a response to Trump’s looming threats. He argued that the tariff cuts on items such as motor vehicles and toys were more a result of “the Trump Effect” than any real change in government policy.
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“If the Prime Minister’s praise for Trump has failed and tariffs are imposed, I want to know what the government’s response will be,” Chidambaram said. He expressed concern that such a tariff and trade war could lead to devastating consequences, including a decline in exports, lower foreign direct investment (FDI), higher inflation, and a depreciating currency.
The Congress leader also criticized the government for not consulting with opposition parties or holding a parliamentary discussion on the matter, describing the threat of a tariff war as a critical issue requiring immediate attention.
Chidambaram urged India to align itself with nations like Canada, Britain, France, Germany, and Japan, all of which have shown a commitment to preventing a global trade conflict. He stressed the need for collective action to avert the negative economic consequences of a tariff war.
In his speech, Chidambaram also highlighted the dire economic challenges facing India, including rising unemployment, inflation in essential sectors such as food, education, and healthcare, stagnant wages, and increasing household debt. He accused the government of ruthlessly cutting budgeted expenditures in crucial areas such as health, education, social welfare, agriculture, and rural development, exacerbating the country’s economic troubles.
(This story is published from a syndicated feed)
