Tharoor says India must impose 50% tariff on American exports as retaliation

By Anjali Sharma

WASHINGTON – Congress MP Shashi Tharoor on Thursday urges India to impose a 50% tariff on US exports in response to Donald Trump’s steep trade hike on Indian goods, calling for a firm retaliatory stance.

Tharoor reacted to the additional 25 per cent tariff imposed by former US President Donald Trump on Indian goods, urged the Indian government to respond firmly. He said India should not hold back and must impose a matching 50 per cent tariff on American exports in retaliation.

“India must stand its ground. If Trump wants to play tough, we should respond in kind,” Tharoor said, calling for a strong and proportionate trade response.

He suggested that India should question the United States on whether it truly values the bilateral relationship. If the US treats India as insignificant, then India should reconsider the importance it places on ties with the US

He added, “It will definitely have an impact because we have a trade of $90 billion with them, and if everything becomes 50% more expensive, buyers will also think why should they buy Indian things?… If they do this, we should also impose a 50% tariff on American exports…”

He stated, “It is not that any country can threaten us like this… Our average tariffs on American goods are 17%. Why should we stop at 17%? We should also raise it to 50%… We need to ask them, do they not value our relationship? If India doesn’t matter to them, they should also not matter to us…”

Prime Minister Narendra Modi on Thursday reaffirmed that India will “never compromise on the interests of farmers, fishermen, and dairy producers,” in the wake of former US President Donald Trump’s decision to impose an additional 25% tariff on Indian goods.

M S Swaminathan Centenary International Conference in New Delhi, Modi said, “For us, farmers’ interests are paramount. India will not back down when it comes to protecting our farmers, fishermen, and dairy producers. I know I may have to pay a steep political price, but I am prepared for it. Today, India stands firmly with its agricultural community.”

Trump’s latest tariff hike, announced on Wednesday, deals a serious blow to India’s trade interests. The fresh 25% levy—set to take effect from August 27—follows a similar 25% tariff imposed just a week earlier, escalating tensions between the two countries.

Trump had threatened further penalties over India’s continued purchase of Russian oil and defence systems. New Delhi has strongly criticised the tariffs, calling them “unjustified and unreasonable,” and accused both the US and the EU of unfairly singling out India for its trade ties with Russia.