Tharoor Condemns US Tariff Increase
Congress leader Shashi Tharoor has criticized the United States for imposing an additional 25% tariff on Indian imports, labeling it a “double standard.” The tariff hike, announced by US President Donald Trump, targets India for its purchase of Russian oil. Tharoor argues that this move will render Indian goods unaffordable in the US market, impacting trade relations between the two nations.
Comparative Analysis of Tariffs
Tharoor highlighted the disparity in US trade policies, noting that China, which imports more Russian oil than India, received a 90-day reprieve from similar tariffs. He pointed out that the US continues to import various materials from Russia, such as uranium and palladium, indicating a selective approach in its trade sanctions.
Impact on Indo-US Relations
The tariff increase could strain the historically friendly relations between India and the US. Tharoor suggested that India might face internal pressure to impose reciprocal tariffs on American exports. This potential trade conflict could lead India to seek new trading partners to mitigate the impact of these tariffs.
Exploring New Trade Opportunities
In response to the tariff hike, Tharoor emphasized the need for India to diversify its trade relationships. He mentioned ongoing discussions with the UK and EU as potential avenues for expanding India’s market reach. Despite these efforts, Tharoor acknowledged that the immediate effects of the tariffs would be challenging for Indian exporters.
Official Response from India
The Ministry of External Affairs (MEA) has termed the US tariffs as “unfair” and “unjustified,” asserting that India’s oil imports are driven by market factors and energy security needs. The MEA vowed to take necessary actions to safeguard India’s national interests against what it views as discriminatory trade practices by the US.