Speedy Summary
- Shashi Tharoor’s Statement: Congress MP shashi Tharoor suggested India should raise its tariffs on U.S. goods to 50% in response to the recent imposition of an additional 25% tariff by the United States on Indian exports.
- Trade Impact: Tharoor highlighted that India’s $90 billion trade with the U.S. would be affected, arguing no country should threaten India economically.
- U.S. Tariff Action: on August 6, President Donald Trump signed an Executive Order citing national security and foreign policy concerns for imposing higher tariffs due to India’s imports of Russian oil.
- Indian Response: The Ministry of External Affairs termed the move “unfair, unjustified, and unreasonable,” affirming that India will act to protect its national interests.
- U.S. Perspective: A senior American official emphasized there was “no comparison” between Indian imports of Russian oil and U.S. imports from Russia.
Indian Opinion Analysis
The proposed reciprocal tariff hike by Shashi Tharoor highlights a potential strategy for maintaining balance in international economic relations amid growing tensions with the U.S. the suggestion reflects India’s need to assert autonomy in matters impacting its trade policies and energy partnerships.
While India’s $90 billion trade relationship with America is notable, escalating measures could create challenges for exporters reliant on this market while possibly incentivizing domestic production or alternative trading partnerships elsewhere globally.
From a diplomatic lens, this episode underscores complexities around aligning global trade decisions with geopolitical stances like India’s position on Russian oil amid broader energy security considerations.
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