Following US President Donald Trump’s announcement of new import tariffs, senior Congress leader Shashi Tharoor expressed concerns over their impact on the automobile sector, particularly the trade of automobile parts. He also emphasized the need for strong trade negotiations to secure a more favorable deal for India.
Tharoor: Tariffs to Impact US Manufacturers & Consumers
Speaking to media, Tharoor noted that while India does not export many automobiles to the US, automobile parts are a major factor in trade relations. He warned that the tariffs could hurt both Indian suppliers and American manufacturers who rely on Indian-made parts.
“We are not selling many automobiles in America, but automobile parts are a major factor and that would be affected, and the first victims are going to be American manufacturers who would be buying Indian parts. So that’s not very good for us, that’s not very good for them, and that’s not very good for the American consumers,” Tharoor said.
He expressed optimism that trade negotiations over the coming months could lead to a better agreement, stating:
“I hope that in the negotiations over the next nine months, we have time till September-October for a trade agreement, I hope that our negotiators will do a good job in trying to get something better than this.”
Trump’s Tariff Hikes: India Faces 26% Duty
Trump, while announcing sweeping new tariffs, revealed that India will face a 26% tariff on its exports to the US. During his speech at the Make America Wealthy Again event, he called Prime Minister Narendra Modi a “great friend” but criticized India’s trade policies.
“India very, very tough. The Prime Minister just left and is a great friend of mine, but you are not treating us right. They charge us 52 per cent, and we charge them almost nothing…” Trump said.
25% Tariff on Foreign Automobiles
Trump also announced a 25% tariff on all foreign-made automobiles, saying:
“Such horrendous imbalances have devastated our industrial base and put our national security at risk. I don’t blame these other countries at all for this calamity. I blame former presidents and past leaders who weren’t doing their job… Effective at midnight, we will impose a 25% tariff on all foreign-made automobiles.”
Tariffs on Key Countries
India is among several nations facing higher import tariffs under Trump’s policy. Some of the key tariff rates include:
- China: 34%
- European Union: 20%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- India: 26%
- United Kingdom: 10%
- Bangladesh: 37%
- Pakistan: 29%
- Sri Lanka: 44%
- Israel: 17%
What’s Next?
With negotiations expected to continue in the coming months, India’s trade officials will likely push for relief from these tariffs to protect Indian industries and exporters. Tharoor’s remarks signal that the tariff issue will be a key point of debate in India’s economic and foreign policy discussions.