President Donald Trump’s recent announcement of a 25% additional import duty on goods from India—alongside an unspecified penalty—has sparked concern across India’s political and economic spectrum. Opposition MP Shashi Tharoor called the move “completely unreasonable,” warning it could derail ongoing bilateral trade negotiations and significantly damage India’s export-driven sectors.
According to reports, the penalties may be linked to India’s continued energy and defense ties with Russia. Though the exact rate is unknown, experts suggest it could escalate to 35%, 45%, or even 100% in extreme scenarios, depending on geopolitical developments and U.S. strategic interests.
Addressing reporters, Tharoor underlined three critical concerns. First, India must prioritize its national interest in any negotiation. With nearly 700 million Indians dependent on agriculture, he stressed that giving in to U.S. pressure—particularly when it comes to food subsidies or agricultural imports—would be a mistake. “We can be flexible, but not submissive,” he said.
Second, Tharoor warned of the economic blow such penalties could inflict. The U.S. is India’s largest export destination, with goods worth nearly $90 billion sent there last year. Tariffs of this scale could reduce India’s GDP by up to 0.5%, especially affecting key sectors like pharmaceuticals, textiles, technology, jewelry, and auto parts.
Third, Tharoor questioned the fairness of the U.S. complaints. He pointed out that India’s average tariff on American goods is about 17%—not excessively high in global terms. Meanwhile, the U.S. maintains extremely high ceiling tariffs, some exceeding 350% on specific agricultural imports.
Many in India’s policy circles believe Trump’s tariff threat is a negotiation tactic aimed at forcing Delhi into rapid concessions. While trade talks are ongoing, both sides are under pressure to reach a deal before October. But Tharoor insists India must not bow to coercion, especially when national food security and economic stability are on the line.