Tharoor says Trump’s tariffs are costing India jobs in gems and seafood

Congress MP Shashi Tharoor on Friday (September 12) said that India was already feeling the effects of tariffs imposed by US President Donald Trump, as it was resulting in significant job losses in the gems and jewellery business in Surat and in seafood and manufacturing sectors. Dubbing Trump as “mercurial”, Tharoor also said that no other US President before him had acted in such a way.

‘Trump’s additional tariff a sanction’

Tharoor, speaking at a conference organised by CREDAI, India's apex industry body for the real estate sector, in Singapore, also said that no one should have any illusion that India can just shrug off Trump’s tariffs. He also said that the 25 per cent retaliatory tariff imposed by Trump on India for buying Russian oil was not just a tariff, but a sanction.

"Already, people are losing jobs. 1.35 lakh people in Surat have been laid off in the Gems and jewellery business," said Tharoor.

"I don't want anyone to have any illusions that we can just wash it up,” he added. The Congress MP said that the combined 25 per cent reciprocal tariff and 25 per cent retaliatory tariffs have made it “virtually impossible” for Indian manufacturers to enter the US market, with India’s competitors having lower tariffs.

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‘No choice but to move on’

The Congress leader said that India has no choice but to tighten its belt and move on.

"We are finding it very difficult to get into the American market. And I am pleased to say that we are actually negotiating, knowing very well that we need some access to America," he said, adding that there are possibilities of a reduction in the initial basic 25 per cent tariff imposed by the US.

"The imposition of an additional 25 per cent is not a tariff. It is actually sanctions, and it is a sanction against us for buying oil from Russia. But that's totally unfair, because China is importing more oil and gas from Russia," he added.

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‘US sanction policy completely bizarre’

Tharoor criticised the Trump administration, saying that the US should have a uniform policy for every country buying oil from Russia, adding that the entire sanction policy seemed to be “completely bizarre and unsustainable”. He said that regardless of how successfully India negotiates a basic trade deal with the US, India would still have an “enormous problem” unless the tariffs are withdrawn.

Tharoor said there is a need to diversify export markets and felt that the recent trade agreement with the UK would boost India's exports. He said that India should not only diversify its trade relations but also do the same with its political communication with other countries. He said that India was showing serious intent of improving its ties with China and trying to move away “from confrontation to conversation” with the neighbouring country.

"We are essentially showing a serious intent, at least to move away from confrontation, in our conversation with China. Even though we've had some very, very tough times in that relationship, I think we will find ourselves trying to open up very much more for China than we have done in the last 5-6 years," said Tharoor.

(With agency inputs)