India Faces 75% US Tariffs Amid Iran Tensions, Tharoor Warns of 'Serious' Trade Impact

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Congress MP Shashi Tharoor has expressed concern over the US decision to impose a 75% tariff on India due to its continued trade with Iran. This move comes after US President Donald Trump announced an additional 25% tariff on countries doing business with Iran. Tharoor believes that India will bear a significant burden, making it difficult for Indian companies to export goods to the US. Tharoor pointed out that the initial 25% tariff imposed on India is higher than those on other South Asian nations, which are India's competitors in the export of labour-intensive products such as gems, jewelry, marine products, shrimp, and leather. With the additional 25% tariff for Russian sanctions and 25% for Iranian sanctions, the total tariff on India would be 75%. This, according to Tharoor, would make it challenging for Indian companies to remain viable in the US market. However, Tharoor noted that certain products, such as pharmaceuticals, might still be exportable to the US. He urged the US ambassador to work towards striking a trade deal between the two countries. The Indian government has also expressed interest in a mutually beneficial trade deal, with External Affairs Minister S Jaishankar speaking to US Secretary of State Marco Rubio to discuss bilateral cooperation, including trade, nuclear energy, and defense. The US trade deal has been a topic of discussion between India and the US, with both sides expressing their willingness to engage in talks. However, recent claims by US Commerce Secretary Howard Lutnick that a bilateral trade deal couldn't be sealed last year due to Prime Minister Narendra Modi's reluctance to call President Trump have been disputed by the Indian government. The MEA spokesperson has stated that the characterization of these discussions is not accurate and that India remains interested in a mutually beneficial trade deal.