Shashi Tharoor Flags Serious Concern Over Trump's 25% Iran Sanctions Tariff on India

Congress MP and Chairman of the Standing Committee on Foreign Affairs, Shashi Tharoor, has raised serious concerns over the recent US trade measures targeting countries doing business with Iran. Tharoor warned that the cumulative effect of these sanctions could make exporting from India to the United States virtually unviable, particularly for labor-intensive goods.

Tharoor explained that India was already disadvantaged compared to regional competitors such as Vietnam, Thailand, Indonesia, Pakistan, and Bangladesh, who face tariffs of 15–19 percent, while India was initially subjected to 25 percent tariffs. The situation, he said, worsened with additional sanctions-related levies on Russian and Iranian trade, effectively pushing the tariff rate for Indian exporters to 75 percent.

“No Indian company will be viable in exporting to America at 75 percent,” Tharoor asserted, adding that only certain sectors, like pharmaceuticals, remain somewhat insulated from these punitive measures. “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 said.

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Tharoor also stressed the importance of concluding a bilateral trade agreement with the US promptly, suggesting it should be finalized in the first quarter of 2026. He expressed hope that the recently appointed US Ambassador to India, Sergio Gore, would work closely with both governments to resolve these trade tensions quickly.

Referring to the recent Trump administration announcement, Tharoor highlighted that any country trading with Iran will face a 25 percent tariff on all dealings with the US, a move he described as damaging to India’s strategic and economic interests. He emphasized that unless tariffs are reduced to levels similar to the UK’s 15 percent rate, the strategic partnership between India and the US would lose practical significance.

Tharoor also welcomed the Pax Silica and Quad Summit announcements, stressing that India must leverage its position to secure favorable trade terms while maintaining respect for its role as a strategic partner. This statement comes amid growing concerns in India’s business community, where exporters fear that continued US sanctions could severely impact gems, jewelry, marine products, leather, and shrimp exports, which form a significant part of India’s labor-intensive exports to the US.

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