A sharp rise in US tariffs might wreck Indian exports, says Congress leader Shashi Tharoor. New American duties tied to Iran dealings were just announced by President Donald Trump. Tharoor points out that stacking these charges could push total tariffs near three-quarters of export value. That level would likely shut down market access for many Indian goods.

Industries depending on overseas sales may face deep setbacks. The tension doesn’t stop at economics – it risks weakening long-term ties between India and America. Trade actions like this one can quietly reshape diplomatic relationships. Not every policy shift comes with loud alarms – some creep in through tax codes. Still, their impact hits hard when layered over existing pressures. India’s position becomes tougher as global rules tighten around energy-linked commerce. What seems like a distant sanction often lands close to home.

On Wednesday, while talking to ANI, Tharoor shared that the U.S. tariff system had bothered him since day one. Right from the start, he explained, the first 25 percent duty on Indian goods made it harder for India to keep up with nearby nations. Though others moved faster, India faced delays – not just in trade but in response.

Tharoon spoke up, uneasy since day one over the 25 percent duty placed on India. That level caused strain right away, he noted. Neighboring markets in Southeast Asia – Vietnam, Thailand, Indonesia – face much smaller charges. So do nations such as Pakistan and Bangladesh. Their rates sit somewhere from 15 to 19 percent. Unfair edges start there.

“These are the very countries competing with us in labour-intensive exports to America – gems and jewellery, marine products, shrimp, leather and similar goods,” he noted.

Alarm bells ring, says Tharoor, once extra sanction-driven tariffs enter the picture. His math shows today’s 25 percent duty might climb to 50 percent because of measures tied to Russia. That number then hits 75 percent should penalties linked to Iran take full effect.

“So, let’s face it – no Indian company will be viable in exporting to America at 75 percent,” Tharoor said bluntly.

Survival might still be possible for select areas like pharmaceuticals – those untouched by heavy sanction pressure can stay active in the U.S. Still, across typical export fields, financial sense vanishes fast.

“The other items will not be viable. This is extremely troubling. From my point of view, this is very serious,” he asserted, while also questioning the government’s stance on the issue.

Strategic Partnership Facing Uncertainty?

Tharoor pointed out that heavy tariffs might weaken trust between India and the U.S., not just hurt economies. Fairness matters, he said, when two nations aim to work closely together.

“At 75 percent, the strategic partnership ceases to have any meaning,” he said. “If we can come down to something closer to the 15 percent that the UK has with America, then we are in business. That is the kind of respect you show to a strategic partner.”

Trade Deal Urgency

Pushing forward on trade talks, Tharoor stressed how vital it is for India and the US to finalize an agreement soon. With luck, he said, the fresh ambassador from America might help smooth out tensions and open clearer paths between the nations.

“I hope the new US Ambassador would work very hard on his government and our government and try to bring a meeting of the minds very quickly on the trade deal,” he said.

Tharoor pointed to talks involving External Affairs Minister Dr S. Jaishankar and U.S.

 Secretary of State Marco Rubio. Time matters now, he said. Waiting too long isn’t an option for India. Those conversations showed how urgent things have become.

“The trade deal should happen in the first quarter of 2026. We can’t wait for the whole year to go by,” he said.

Trump Announces New Tariffs on Iran

Days before Tharoor spoke, Trump posted a broad trade directive on Truth Social. His message stated nations doing business with Iran risk 25 percent U.S. tariffs across all trade. That announcement set the backdrop.

“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America,” Trump wrote, adding that the order was “final and conclusive.”

When trade conflicts spread, Tharoor points out how India must act fast to protect its position – falling behind could mean missing key chances abroad. A delay might cost more than expected in a market that matters deeply.