Shashi Tharoor Flags Export Risk as Trump’s Iran Tariffs Threaten Indian Trade
New Delhi: Congress MP Shashi Tharoor on Wednesday expressed serious concern over the impact of US President Donald Trump’s latest tariff decision, warning that Indian exporters would struggle to survive in the American market if cumulative duties rise to 75 per cent.
Speaking to news agency ANI, Tharoor — who also chairs Parliament’s Standing Committee on External Affairs — said even the initial 25 per cent tariff imposed on Indian goods had already put India at a disadvantage compared to regional competitors.
He noted that labour-intensive Indian exports such as gems and jewellery, marine products, shrimp, leather and related goods face tougher competition from countries like Vietnam, Thailand, Indonesia, Bangladesh and Pakistan, which continue to enjoy lower tariff rates ranging between 15 and 19 per cent.
Sanctions Push Tariff Burden Higher
Tharoor pointed out that the tariff pressure has steadily increased. The first 25 per cent levy was followed by another 25 per cent linked to India’s purchase of Russian crude, taking the total to 50 per cent. A further 25 per cent tariff for countries trading with Iran would push the cumulative duty to 75 per cent.
At such levels, Tharoor said, Indian companies would find it impossible to export competitively to the US, with only non-sanctioned sectors like pharmaceuticals potentially remaining viable.
Call for Trade Agreement and Strategic Parity
Tharoor stressed the urgency of finalising a bilateral trade agreement between India and the US, expressing hope that the newly appointed US ambassador would help bridge differences. He argued that tariff levels of this magnitude undermine the idea of a strategic partnership and said India should be treated on par with close US allies.
Trump’s Iran Tariff Order
Trump announced the new tariff measure on Truth Social, declaring that any country continuing business with Iran would face a 25 per cent tariff on all trade with the US, effective immediately. India already faces a 50 per cent tariff from August 27, and the additional Iran-linked levy would sharply escalate pressure on Indian exports.
Our Thoughts
The warning from Shashi Tharoor underscores growing concern in India over the economic fallout of geopolitics-driven trade policies. If tariffs climb to 75 per cent, the cost to India’s export competitiveness could be severe, making diplomatic engagement and trade negotiations with Washington increasingly urgent.