‘This is very serious’: Shashi Tharoor on US 25% tariff over countries trading with Iran

Chairman of the Standing Committee on Foreign Affairs and Congress MP Shashi Tharoor expressed a "serious concern" over US President Donald Trump for announcing a 25 per cent tariff against countries trading with Iran. He asserted that no Indian company will be able to export to America at 75 per cent.

The Congress MP stated that he had been concerned about the US tariff policy from the outset, adding that India was already placed at a disadvantage compared to its regional competitors. Speaking to news agency ANI on Wednesday, Shashi 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 deteriorated further with the introduction of additional tariffs linked to sanctions, as no Indian company will be exporting to America at a 75 per cent total tariff.

"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 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 added.

"It will be only those items that are not so far sanctioned, like pharmaceuticals and so on, 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.

New US Ambassador would play constructive role: Shashi Tharoor

The MP also said he hoped the new US Ambassador would play a constructive role in advancing a trade agreement, adding that he expected the envoy to work closely with both governments to help reach a quick consensus on the deal.

Tharoor's comments come after US President Donald Trump announced on Monday a broad trade action against countries that continue doing business with Iran, imposing a 25 per cent tariff on all their trade with the US.

In a post on social media platform Truth Social, Trump announced, "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!"