Senior Congress leader P Chidambaram demanded on Thursday that the Indian government clarify its stance on U.S. President Donald Trump’s looming tariff war, set to impose reciprocal tariffs from April 2, 2025.
Speaking during a Rajya Sabha debate on The Appropriation (No. 3) Bill, 2025, and The Finance Bill, 2025, moved by Finance Minister Nirmala Sitharaman, Chidambaram criticized the lack of parliamentary discussion or opposition consultation, warning of dire economic fallout—depressed exports, reduced foreign direct investment (FDI), rising inflation, and a weaker rupee.
“A tariff war will lead to a trade war. The whole world will be hurt,” Chidambaram said, urging India to align with nations like Canada, Britain, France, Germany, and Japan to avert the crisis. He questioned the government’s silence, asking, “What is India’s response? There’s been no policy statement, no debate. Are there any cards to play?”
He alleged that recent customs duty cuts on items like motor vehicles, motorcycles, and toys in the 2025-26 Budget were a knee-jerk reaction to Trump’s pressure, not a strategic shift.
Chidambaram pointed to failed attempts to appease Trump—concessions like scrapping the 6% digital service tax on March 25 and PM Narendra Modi’s praise—claiming they’ve left the U.S. leader unmoved. “If concessions and flattery have failed, what’s next?” he pressed, warning that a tariff war would violate WTO agreements and devastate developing economies.
TMC’s Sagarika Ghose echoed the alarm, calling the April 2 tariffs a “tsunami” that could slash India’s $66 billion export market, hitting 87% of its U.S.-bound goods. BJP’s Kunwar Ratanjeet Pratap Narayan Singh countered, “We can only discuss it post-implementation. Until then, it’s premature.” He defended Modi’s U.S. outreach as a trade boon, dismissing opposition critiques as inconsistent.