Senior Congress leader Shashi Tharoor has sounded the alarm over the economic fallout for India following the U.S. government’s recent imposition of hefty tariffs. He says hundreds of thousands of Indian workers have already lost their jobs, particularly in sectors like gems and jewellery, seafood, and manufacturing.
According to Tharoor, the U.S. has slapped a 50% tariff on certain Indian exports—25% as a base levy, plus an additional 25% as a penalty for India’s continued oil purchases from Russia. These charges have, he argues, made many exports from India almost unviable, shutting doors to American markets that had been key buyers of Indian goods.
He noted that in Surat alone, a major hub for gems and jewellery, approximately 135,000 people have been laid off. Other industries also face job losses and order cancellations because of the new trade barrier.
Tharoor criticised the U.S. president’s unpredictable behaviour and said that such trade policy moves depart sharply from diplomatic norms. He contrasted this with traditional expectations of consistent U.S. foreign policy.
Observing the current situation, Tharoor urged India to expand and diversify its export markets to reduce dependence on the U.S. He said recent deals—such as trade arrangements with the UK—and stronger ties with Europe could help.
He also stressed that political outreach matters: India cannot afford to rely solely on one market or one bilateral relationship. Turning to foreign policy, he mentioned signs of thawing with China and maintaining strong ties with Russia. He called for India to build broader international coalitions, especially with European countries, to counterbalance the pressures imposed by U.S. sanctions.
Tharoor described America’s extra tariff as essentially a sanction for India’s energy choices—specifically, its decision to continue purchasing oil from Russia. He argued the penalty was unfair, especially considering China continues to import more oil and gas from Russia yet faces less punitive treatment.
Unless alternative export channels are developed, Tharoor warned, India will continue to suffer economically. He emphasized the need for trade diplomacy, strategic diversification, and policy clarity to navigate this global economic turbulence.