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Shashi Tharoor Slams Trump’s ‘Dead Economy’ Remark, Warns of Trade Fallout

Congress MP Urges Strong Resistance to US Tariff Threats, Highlights India’s Robust Economic Position

Published on: July 30, 2025
By: [BTNI]
Location: New Delhi, India

Congress MP Shashi Tharoor has strongly criticized US President Donald Trump’s claim that India’s economy is “dead,” calling it a “very serious matter” that could severely disrupt trade relations between the two nations. Speaking to reporters outside Parliament in Delhi, Tharoor expressed alarm over Trump’s announcement of a 25% tariff on Indian imports, coupled with an unspecified penalty for India’s purchase of oil and gas from Russia, which could escalate to 35-45% or even a staggering 100%. Such measures, he warned, could “destroy” India’s trade with the United States, a critical market for Indian exports valued at $87-90 billion annually.

Tharoor emphasized that the ongoing trade negotiations between India and the US offer a glimmer of hope, with the possibility of reducing the proposed tariffs. However, he cautioned that if the US persists with “completely unreasonable” demands, India’s negotiators have every right to resist. “America has to understand our needs as well,” Tharoor asserted, noting that India’s average tariffs on US goods, at around 17%, are not unreasonable. He pointed out that American goods often lack competitive pricing in the Indian market, urging the US to consider India’s perspective in the talks.

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The Congress leader highlighted India’s economic resilience, dismissing Trump’s “dead economy” remark as misguided. He stressed that India is not overly dependent on exports like some other economies, such as China, and boasts a strong domestic market. “We are not out of options,” Tharoor said, suggesting that India could diversify its markets if the US imposes punitive tariffs. He expressed confidence in India’s negotiators to secure the best possible deal but warned that India may need to “walk away” if the US demands remain untenable.

Tharoor’s remarks come amid growing concerns over the potential economic fallout from Trump’s tariffs, which could lead to a 0.5% drop in India’s GDP, according to early estimates. The Congress MP also took a swipe at the US-Pakistan oil deal, sarcastically wishing them luck with their “illusions” about finding oil in Pakistan. His comments reflect a broader sentiment among Indian leaders who view Trump’s tariff threats and remarks as a bargaining tactic in ongoing trade talks.

This development has sparked a heated debate in India, with Tharoor’s stance contrasting with some opposition leaders who have criticized the government’s handling of foreign policy. As India navigates these challenging negotiations, Tharoor’s call for prioritizing national interests underscores the need for a balanced and assertive approach to safeguard India’s economic and strategic priorities.

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