India’s Potential Retaliation Against US Tariffs
Senior Congress leader Shashi Tharoor has suggested that India should consider imposing reciprocal tariffs on US imports if negotiations with Washington, DC, fail to resolve the current trade tensions. This statement comes in response to the Trump administration’s recent decision to levy a 50% tariff on Indian goods, a move that Tharoor describes as “unfair, unjustified, and unreasonable.” He emphasized the need for initial negotiations, questioning why the US has given India only 21 days compared to China’s 90-day deadline. Tharoor proposed that India, which currently charges 17% tariffs on US imports, should match the US’s 50% rate if necessary.
Impact of US Tariffs on India’s Energy Security
The additional 25% tariff imposed by the US is reportedly a penalty for India’s continued purchase of Russian crude oil. India defends its actions by citing the need for energy security. Tharoor argues that India should continue buying Russian oil if it remains cheaper than alternatives, as it is crucial for development activities.
Trade Negotiations and Agricultural Concerns
Trade talks between India and the US have stalled due to disagreements over market access, particularly in agriculture. Prime Minister Modi has reiterated that protecting India’s farmers is a top priority, even if it means facing personal and political challenges. Tharoor supports this stance, highlighting the importance of agriculture to India’s economy and urging solidarity with farmers.
Strategic Partnerships and Future Alliances
Tharoor also addressed the broader implications of strained US-India relations, suggesting that India may need to seek new alliances if current partners do not appreciate its priorities. He stressed the importance of maintaining strong ties with countries that understand India’s domestic needs.