Trump tariff bomb on Iran trade: Tharoor flags existential crisis for Indian exporters

Speaking to ANI, Tharoor described the proposed levy on Indian products as “troubling” and “very serious,” warning that “no Indian company will be viable in exporting to America at 75 percent tariffs.”

The Chairman of the Parliamentary Standing Committee on External Affairs said, “I have always been troubled about these tariffs because even the very first 25 percent imposed on India was a problem. Other economies—our rivals in South East Asia—that compete with us in labour-intensive exports to America such as gems and jewellery, marine products, shrimp and leather were given tariffs between 15 and 19 percent.”

“So the 25 percent was already a problem. Now you have 25 percent more due to Russia sanctions taking it to 50 percent, and if another 25 percent is added under Iran sanctions, that takes it to 75 percent. Let’s face it—no Indian company will be viable in exporting to America at 75 percent,” he said.

Tharoor added that only sectors not covered by sanctions, such as pharmaceuticals, may remain viable.

“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. I hope the new US Ambassador will work hard with both governments to bring a meeting of minds quickly on a trade deal,” he said.

Trump recently announced that any country doing business with Iran would face a 25 percent tariff on its trade with the United States. In a post on Truth Social, he said the measure was “effective immediately” and “final and conclusive.”

The announcement comes amid widespread protests in Iran and global scrutiny of Tehran’s crackdown on dissent.

Trump has framed the tariffs as part of a broader response to the situation in Iran, stating that diplomacy remains preferable while keeping “all options on the table.”

Experts have cautioned that the move could disrupt global trade and raise costs for exporters to the US, though some analysts believe India may face limited immediate impact due to relatively low trade volumes with Iran.