New Delhi: Former U.S. President Donald Trump has once again stirred the global trade waters—this time by announcing a 25% tariff on Indian goods, along with a proposal to impose financial penalties on the country. The declaration has sparked political heatwaves across India, providing fresh ammunition for opposition parties to target the central government.
The announcement has led to sharp criticism from several Congress leaders, who are questioning the government’s preparedness and diplomatic strategy. However, the ruling BJP maintains that the situation is under control and that the government will respond appropriately through diplomatic channels.
Among the prominent voices from the opposition, senior Congress leader Shashi Tharoor offered a nuanced perspective. While acknowledging the seriousness of the challenge, Tharoor emphasized India’s strong domestic market and urged support for Indian negotiators.
Speaking to news agency ANI within the Parliament complex, Tharoor remarked, “This is undoubtedly a complex negotiation. We’re not only dealing with the United States—we’re also engaged in talks with the European Union, have finalized an agreement with the UK, and are negotiating with several other countries. If we find ourselves unable to compete in the American market, then we must consider diversifying elsewhere.”
Highlighting India’s economic resilience, Tharoor added, “Unlike China, our economy is not solely export-driven. We have a robust domestic market to fall back on. If the U.S. takes an unreasonable stance, we must be prepared to walk away. Supporting our negotiators in finding the best possible deal is essential—but if a fair deal isn’t on the table, backing out is also a viable option.”
The development follows Trump’s official statement on Wednesday, where he not only proposed a 25% tariff on Indian imports but also suggested financial penalties. The move has been widely interpreted as a protectionist step in light of upcoming U.S. elections.
In response, the Indian government issued a statement reaffirming its commitment to ongoing trade negotiations with the United States. Officials emphasized that discussions have been underway for several months with the aim of reaching a balanced and mutually beneficial trade agreement.
As the diplomatic dialogue continues, all eyes are on how India will navigate this latest trade challenge, balancing both international pressure and domestic political scrutiny.