Congress MP Shashi Tharoor on Wednesday warned that Indian exporters would be effectively shut out of the US market if cumulative tariffs imposed by the Donald Trump administration rise to 75%, calling the situation untenable for most sectors.
Speaking to news agency ANI, Tharoor—who chairs Parliament’s standing committee on external affairs—said even the initial 25% tariff imposed on India had already placed Indian exporters at a disadvantage compared to regional competitors in Southeast Asia.
“I have always been troubled by these tariffs. Even the first 25% imposed on India was problematic because our competitors—Vietnam, Thailand, Indonesia, and even Pakistan and Bangladesh—faced tariffs of only 15% to 19% on similar labour-intensive exports such as gems and jewellery, marine products, shrimp and leather,” he said.
Tharoor noted that the situation has worsened with additional sanctions-related levies. The original 25% reciprocal tariff was followed by another 25% linked to India’s purchase of Russian crude oil, taking the total duty to 50%. A further 25% tariff threatened over trade with Iran would push the cumulative burden to 75%.
“At that level, let’s be honest—no Indian company can viably export to the United States,” Tharoor said, adding that only sectors exempt from sanctions, such as pharmaceuticals, may be able to sustain exports.
He stressed the urgency of concluding a bilateral trade agreement with Washington and expressed hope that the newly appointed US ambassador would help bridge differences between the two countries. Tariffs of this magnitude, he said, undermine the spirit of the India–US strategic partnership, arguing that India should be treated on par with America’s close allies.
The remarks come after President Trump announced on Truth Social an additional 25% tariff on countries that, in his words, “continue to do business with Iran.” Calling the decision final, Trump said the levy would apply immediately to all commercial transactions with the United States.
India is already facing a 50% tariff from August 27. Any fresh levy linked to Iran-related sanctions would further escalate pressure on Indian exports to the US, deepening trade tensions between the two countries.
‘India Can’t Compete in US Market At 75% Tariffs,’ says Shashi Tharoor Amid Trump’s Trade Offensive
