Lagatar24 Desk
New Delhi: Congress MP Shashi Tharoor has urged India to reconsider its heavy reliance on the US market after President Donald Trump doubled tariffs on Indian goods to 50% over continued Russian oil imports. Speaking outside Parliament, the Thiruvananthapuram MP said India must prioritise its self-interest and seek new trade partners instead of depending solely on Washington.
Concerns Over Changing US Attitude
Tharoor described the US move as a shift in attitude from a close strategic partner and warned that India would need to “think about many things” in its foreign and trade policy. He noted that while Trump’s move could be a negotiating tactic, India’s stance in talks over the next two to three weeks must be guided by national interests. The heightened tariff, the highest imposed on any US trade partner alongside Brazil, is expected to severely affect sectors such as textiles, leather, and marine exports.
Call for Market Diversification
Highlighting opportunities beyond the US market, Tharoor pointed to India’s recent Free Trade Agreement with the UK, where 99% of Indian goods now face zero tariffs, and ongoing talks with the European Union. He stressed exploring Africa and Asia as alternative markets, especially if cooperation with the US in technology and AI remains intact. US officials said the first 25% tariff took effect on August 7, with the additional 25% due in 21 days, impacting goods not already in transit.
Trade Impact and Economic Stakes
India has condemned the US decision as “unfair, unjustified and unreasonable,” with Prime Minister Narendra Modi vowing not to yield under economic pressure. In 2024-25, bilateral trade between India and the US reached $131.8 billion, with $86.5 billion in exports and $45.3 billion in imports. Affected sectors include textiles, gems and jewellery, shrimp, leather goods, chemicals, and machinery.
