Expressing "serious concern" over US President Donald Trump's 25 per cent tariff announcement against countries trading with Iran, Chairman of the Standing Committee on Foreign Affairs and Congress MP Shashi Tharoor asserted that "no Indian company will be viable in exporting to America at 75 per cent.
The Congress MP said he had been "troubled" by the US tariff regime from the very beginning, adding that India was already at a disadvantage compared to its regional competitors.
Speaking to ANI on Wednesday, Tharoor said, "I have always been troubled about these tariffs because even the very first 25 per cent that was given to India was a problem because all the other economies, our rivals in South East Asia, who are competing with us in terms of labour-intensive industries that we produce, that we export to America like gems, jewellery, marine products, shrimp, leather, all these kinds of goods countries like Vietnam, Thailand, Indonesia and even Pakistan and Bangladesh were all given tariff between 15 per cent and 19 per cent."
He added that the situation had worsened with additional sanctions-related tariffs.
"So, the 25 per cent was already a problem. Now, you have 25 per cent more for Russian sanctions which takes it up to 50 per cent and if there are 25 per cent more in Iranian sanctions, that it takes it up to 75 per cent. So, let's face it, no Indian company will be viable in exporting to America at 75 per cent," Tharoor said.
"It will be only those items that are not so far sanctioned, like pharmaceuticals and so, which we can continue selling. The other items will not be viable. So, it is troubling. I don't know what the Government is saying, but from my point of view, this is very serious," he asserted.
The Congress MP also expressed hope that the new US Ambassador could help with the trade deal. "I hope that the new US Ambassador would work very hard on his Government and our Government and try and bring a meeting of the minds very quickly on the trade deal," he added.
Tharoor's remarks come after US President Donald Trump announced a sweeping trade measure on Monday targeting countries that "continue to do business with Iran", imposing a 25 per cent tariff on all their business dealings with the US.
In a post on Truth Social, Trump said, "Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive. Thank you for your attention to this matter!"
Further, commenting on the conversation between External Affairs Minister Dr S Jaishankar and US Secretary of State Marco Rubio, Tharoor stressed the urgency of concluding a bilateral trade agreement.
"It (trade deal) should be in the first quarter of 2026. We can't wait for the whole year to go by for a trade deal. I think it really should happen sooner," he said.
He welcomed Pax Silica's announcement, saying, "I think the Pax Silica announcement was welcome. I do believe that the Quad Summit announcement should not be delayed. We should be able to exercise our right sooner."
Tharoor further added, "Certainly, at 75 per cent (tariff) there is no deal possible. If we can come down to something closer to the 15 per cent that the UK has with America, then we are in business. That is the kind of respect you show to a strategic partner. But at 75 sort of thing, the strategic partnership ceases to have any meaning."
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
