Should India Impose 50% Tariff in Response to Trump's Threat?
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Synopsis
In a strong response to President Trump's tariff threats, Shashi Tharoor urges India to consider a 50% tariff on American imports. This move is seen as a necessary step if diplomatic talks fail. Tharoor's insights into global trade dynamics raise crucial questions about India's trade strategy and its standing in international relations.
Key Takeaways
- Tharoor advocates for reciprocal tariffs.
- Current tariff on US imports in India is 17%.
- Potential impact on $90 billion trade relationship.
- Call for unity among Indians on trade issues.
- Importance of preserving US-India ties despite trade tensions.
New Delhi, Aug 7 (NationPress) Congress MP Shashi Tharoor emphasized the need for a reciprocal tariff system in light of US President Donald Trump's recent announcement threatening hefty import duties on Indian products. Tharoor suggested that if diplomatic discussions with Washington do not yield favorable outcomes, New Delhi should contemplate a 50 percent tariff on American imports.
Trump has specifically targeted India, despite other nations like China and Turkey continuing to purchase oil from Russia.
The Indian government has labeled this action as "extremely unfortunate", arguing that they are being penalized for measures that several other countries are also implementing based on their national interests.
In a statement to reporters, Tharoor remarked, "This will certainly affect us because we have a $90 billion trade relationship. If costs rise by 50 percent, buyers may question why they should opt for Indian goods. Competitors like Vietnam, Indonesia, Pakistan, Bangladesh, and China may offer lower prices, making it hard for Indian products to thrive in the American market."
Tharoor criticized the additional 25 percent tariff proposed by Trump, labeling it as "unjust" and suggesting it is connected to India's ongoing oil and gas dealings with Russia.
"China is importing nearly double what we are from Russia, yet they received a 90-day allowance while we are allotted just 3 weeks. This indicates a different message from Washington that our government needs to acknowledge and address," he stated.
Advocating for mutual treatment, Tharoor asserted, "If they do this, we should also impose a 50 percent tariff on American exports. No foreign nation can threaten us like this. It is absolutely unacceptable. I believe every Indian would concur that we must stand united on this matter."
Tharoor also pointed out that India imposes only a 17 percent tariff on most US imports, while the American President is contesting that figure with an aggressive 50 percent.
"Reciprocal is their own term. They claim it's reciprocal. We are not imposing tariffs on them. Trump's complaint is that our average tariff on American goods is merely 17 percent. If they are implementing a 50 percent tariff in retaliation, why should we remain at 17 percent? We too can increase it to 50 percent," he said.
Nonetheless, Tharoor reiterated his preference for avoiding unnecessary conflict.
"India and the US have historically maintained a robust relationship. We have discussed a strategic partnership. We are part of the Quad, collaborating on AI, defense, and other areas. I do not wish for this relationship to suffer over trade issues. However, this provocation has originated from them. If the US does not value our relationship, we should not place excessive value on theirs," he added.
Point of View
It is crucial to approach this issue with an unbiased lens, recognizing that trade relations are vital for national interest. While advocating for fair treatment, we must also consider the long-standing ties between India and the US. Balancing assertiveness in international trade with the preservation of strategic alliances is key to maintaining India's position on the global stage.
NationPress
20/08/2025
Frequently Asked Questions
What is the current tariff rate on US imports in India?
India currently imposes a 17% tariff on most US imports.
What did Shashi Tharoor suggest in response to Trump's tariffs?
Tharoor suggested that India should consider imposing a 50% tariff on American imports if diplomatic efforts fail.
How would a 50% tariff affect trade between India and the US?
A 50% tariff could significantly increase prices on Indian goods in the US market, potentially reducing competitiveness against other countries.
What is the significance of Tharoor's comments?
Tharoor's comments highlight the need for India to respond firmly to perceived unfair trade practices by the US.
Why does Tharoor believe the US relationship should not be compromised?
Tharoor emphasizes the historical strength of the US-India relationship and the importance of collaboration in various sectors.
