‘India cannot compete in US market at 75% duties’: Tharoor amid Trump's tariff war

Congress MP Shashi Tharoor on Wednesday expressed serious concern days after US President Donald Trump announced an additional 25 per cent tariff on countries continuing to do business with Iran. Tharoor, who is also the chairman of the standing committee on foreign affairs, warned that Indian exporters would be unable to compete in the US market if duties rise to 75 per cent.

"I have always been troubled about these tariffs because even the very first 25 per cent that was given to India was a problem because all the other economies, our rivals in South East Asia, who are competing with us in terms of labour-intensive industries that we produce, that we export to America like gems, jewellery, marine products, shrimp, leather, all these kinds of goods countries like Vietnam, Thailand, Indonesia and even Pakistan and Bangladesh were all given tariff between 15 per cent and 19 per cent,” Tharoor said while speaking to news agency ANI.






He said the situation had worsened with additional sanctions-related tariffs. The initial 25 per cent reciprocal tariff was followed by another 25 per cent linked to New Delhi’s purchase of Russian crude, taking the total levy to 50 per cent.

“Now, you have 25 per cent more for Russian sanctions, which takes it up to 50 per cent and if there are 25 per cent more in Iranian sanctions, that takes it up to 75 per cent. So, let's face it, no Indian company will be viable in exporting to America at 75 per cent,” Tharoor said, adding that only non-sanctioned sectors such as pharmaceuticals may continue to export.

Tharoor also stressed the urgency of concluding a bilateral trade agreement, expressing hope that the newly appointed US ambassador would work towards bridging differences between the two governments.

He said that tariff levels as high as 75 per cent undermine the spirit of a strategic partnership, arguing that India should be treated on par with close US allies to sustain meaningful trade ties.

US President Donald Trump announced the decision on Truth Social amid rising tensions involving Iran, rolling out a broad trade measure targeting countries that, in his words, “continue to do business with Iran”. Calling the move final and conclusive, Trump said the 25 per cent tariff would apply to all commercial transactions with the United States and take effect immediately.

“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent

on any and all business being done with the United States of America. This Order is final and conclusive,” he said.

India already faces a steep 50 per cent tariff from August 27, and a fresh 25 per cent levy for trading with Iran would significantly increase pressure on Indian goods exported to the US.