By Admin 
A day after US President Donald Trump announced the imposition of an additional 25 percent tariff on countries doing business with Iran, Congress MP Shashi Tharoor has termed the decision as very serious and worrying. Tharoor warned that if this tariff is fully implemented, India may have to pay up to 75 percent tariff for exports to America, which will make it almost impossible for Indian companies to survive in the American market.
Shashi Tharoor said that India is already facing 25 percent tariff imposed by America, which is higher than other countries in South Asia. Tharoor said in an interview to ANI that they are already facing 25% tariff. Apart from this, there is an additional 25% tariff related to sanctions on Russia. Now under the sanctions related to Iran the tariff will be 75 percent. To be honest, at 75 percent tariff no Indian company will be able to export to America.
Labour-intensive industries are most affected.
Tharoor expressed concern that many of India’s labour-intensive industries would be badly affected by the decision, including gems and jewellery, marine products, shrimp and leather industries. He said that these are the same areas in which India competes with Bangladesh and other South Asian countries and already India has to face high tariffs.
Only pharma sector can survive: Tharoor
Shashi Tharoor said that if the new tariffs are fully implemented, only a limited number of sectors like pharmaceuticals will be able to continue exporting to the US, because they are not currently under major restrictions. After this, perhaps only those products will be left which have not yet come under the restrictions. He further said that he does not know what stand the Indian government is taking on this issue, but according to him this situation is very serious.
Emphasis on the need for India-US trade agreement
Tharoor appealed to the newly appointed US Ambassador to make serious efforts for a trade agreement between India and America, so that the economic relations between the two countries are not harmed further. He said that if diplomatic initiative is not taken soon, Indian exporters will have to suffer huge losses.
Diplomatic talks continue amid tension
Amid ups and downs in India-US trade relations, External Affairs Minister S. Jaishankar spoke on phone with US Secretary of State Marco Rubio on Tuesday. During this, both the leaders discussed issues like bilateral trade, nuclear energy and defense cooperation. Describing this conversation as a good discussion, Jaishankar said that both the sides will remain in touch in future also.
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