New Delhi: Senior Congress leader P. Chidambaram is urging the government to clarify its stance on US President Donald Trump's tariff war threats. Chidambaram criticised the government for not discussing the matter in Parliament or consulting with opposition parties.
Initiating a discussion on the Appropriation (No. 3) Bill, 2025, and the Finance Bill, 2025, that were moved in Rajya Sabha for consideration by Finance Minister Nirmala Sitharaman, he cautioned that a tariff and trade war would lead to depressed exports, lower FDI, higher inflation and currency depreciation.
Chidambaram urged India to join nations like Canada, the UK, France, Germany, and Japan and collectively do everything to prevent a tariff and trade war.
"What is the government's response? What is India's response? There has been no statement of policy, no discussion in Parliament, and no consultation with opposition parties. The government is holding its cards close to its chest, if it has any cards at all." Chidambaram further said, A tariff war will lead to a trade war. The whole world will be hurt..." He also alleged that Sitharaman had announced customs duty reductions on items including motor vehicles, passenger cars, goods, transport vehicles, motorcycles, bicycles and even toys in the Union Budget 2025-26 under the pressure from Trump.
A senior Congress leader criticised the government's efforts to appease US President Donald Trump, saying that despite withdrawing the 6% digital service tax, praising Trump, and reducing customs duties, the US President remains unsatisfied.
"First they tried concessions on February 1, Mr Trump was not satisfied. They tried flattery. He doesn't seem to be satisfied if concessions and flattery have failed and the tariffs are going to be imposed on our exports on April 2, I want to know what the government's response is." A tariff war will be in breach of the WTO multilateral and bilateral trade agreements and international conventions. It will wreck the world economy. It will ruin the economies of developing countries, Chidambaram asserted.
Participating in the discussion, Sagarika Ghose (TMC) said, ...A tsunami is coming on April 2. A new round of reciprocal tariffs is about to be announced by the Donald Trump administration and could prove devastating for India's export earnings." Citing a report, she said 87 per cent of total exports could be hit, worth as much as USD 66 billion. Industries employing lakhs of Indians will suddenly lose market share in the US.
Responding to the opposition remarks, Kunwar Ratanjeet Pratap Narayan Singh (BJP) said, Until the tariff is not implemented, what speech or what mention can anyone make on it?" We will be able to talk about it only after it is implemented after April 2." He said earlier it was said that India should maintain relations with America, but now when Prime Minister Modi is talking about the benefits that India can get for trade by improving relations with the US, the opposition has an issue.
(inputs from PTI)