Congress MP Shashi Tharoor on August 7, 2025, called on the Modi government to respond to US President Donald Trump’s 50% tariff on Indian exports by imposing equivalent duties on American goods and diversifying trade partnerships. Tharoor’s remarks followed Trump’s executive order on August 6, which added a 25% tariff to an existing 25% duty, targeting India’s continued imports of Russian crude oil.
Labeling the US move as “unjust and unfair,” Tharoor argued that India’s purchase of Russian oil adheres to international rules, including the G7’s price cap, and is driven by market dynamics to ensure energy security for 1.4 billion Indians. He criticized the US for singling out India while ignoring larger energy trade by China and the European Union with Russia, and pointed out that the US itself imports Russian uranium, palladium, and chemicals.
Tharoor advocated for a tit-for-tat response, urging India to raise its average 17% tariff on US goods to 50% to match Trump’s punitive measures. “We are not a nation that issues threats, but we should make it clear to our American friends that if they impose 50% tariffs, our tariffs on their goods will also rise to 50%,” he said. He also encouraged exploring alternative markets to reduce dependence on the US, stating, “We are not without friends, resources, or markets.”
Trump’s tariff hike, effective from August 28, 2025, is among the highest imposed on any US trading partner. The US President further accused India of profiting by refining and reselling Russian oil on the global market, claiming it fuels Russia’s war in Ukraine. In a Truth Social post, Trump stated, “India is buying massive amounts of Russian oil and selling it for big profits, disregarding the lives lost in Ukraine.”
India’s Ministry of External Affairs called the US tariffs “unfair, unjustified, and unreasonable,” emphasizing that India’s oil imports are market-driven and critical for energy security. The ministry noted that other nations engage in similar trade without facing penalties and vowed to take all necessary steps to protect national interests.
Earlier on August 7, Prime Minister Narendra Modi, speaking at the MS Swaminathan Centenary International Conference, reaffirmed his commitment to safeguarding Indian farmers, even at a “heavy price,” in response to the US tariff escalation. Tharoor’s call for reciprocal tariffs aligns with growing domestic sentiment to counter what Congress leader Rahul Gandhi termed “economic blackmail” by the US to force India into an unfavorable trade deal.