“If he picks India, the economy will be ruined” P Chidambaram on Trump tariffs

Senior Congress leader P Chidambaram has raised concerns over the lack of parliamentary discussion or opposition consultation on U.S. President Donald Trump’s new tariff policies. In an interview with NDTV, he warned that if India becomes a target of these tariffs, the country’s economy could face severe consequences.

Chidambaram emphasized the need for India to develop alternative strategies to counter potential economic setbacks. “What if Trump takes one step forward? What is our response? What if he takes two steps back? What do we do then? These are critical questions that should be addressed at the highest levels,” he said. While acknowledging that not all strategies need to be made public, he insisted that at the very least, a discussion should take place in parliament or among key opposition leaders.

Lack of Transparency in Decision-Making

The Congress leader criticized the government for its apparent lack of transparency. “Who is making these decisions? I don’t know. Nobody seems to know,” he remarked, claiming that even most ministers are in the dark about India’s response to the tariffs.

His comments come ahead of the U.S. administration’s decision to impose a 25% tariff on auto imports. While India’s direct automobile exports to the U.S. are limited, its auto ancillary industry could be significantly impacted.

Chidambaram also slammed the government’s recent economic decisions, such as eliminating the 2% tax in the Budget and scrapping the 6% ‘Google tax’ on digital services. He accused the administration of making “impromptu, unilateral, knee-jerk decisions” without careful evaluation.

A Call for Global Unity Against Tariffs

According to Chidambaram, India must put its interests first but also work with other nations to push back against unilateral tariffs imposed by the U.S. “There are international trade rules, WTO regulations, and multilateral agreements that prevent sweeping changes like these. We must collaborate with countries that are major players in agricultural, textile, and industrial exports to formulate a common approach.”

He warned of the dangers of Trump’s selective targeting, where specific countries are singled out while others remain unaffected. “If he picks India and imposes tariffs while leaving other countries out, our economy will be devastated in just three to six months,” he cautioned.

Stressing the urgency of the matter, Chidambaram urged the government to take proactive measures to prevent India from being placed in such a vulnerable position. “We must act before it’s too late,” he concluded.