Congress leader P Chidambaram has raised concerns over the lack of parliamentary discussion or consultation with opposition parties regarding US President Donald Trump’s tariff policies. He warned that if Trump were to single out India, the country’s economy could face severe consequences. Stressing the need for global cooperation, Chidambaram urged nations to unite against the US’ unilateral tariffs.
In an interview with NDTV, the former finance minister emphasized the importance of having contingency plans. “What if they take one step forward? How do we respond? What if they take two steps back? What’s our strategy? While the response doesn’t have to be made public, there should at least be a statement in Parliament or a consultation with the opposition. Right now, we are completely in the dark,” he said. He further claimed that, according to his information, even most government ministers remain uninformed about the decision-making process.
Questioning who exactly is formulating India’s trade policies, Chidambaram remarked, “I don’t know. Nobody seems to know.” His comments come ahead of the US’ planned 25% tariff on all auto imports—a move that, while not directly impacting India’s automobile exports, could significantly affect the country’s ancillary industries that supply parts to the US.
Chidambaram criticized the government for making abrupt and unilateral policy decisions, citing examples such as the removal of the 2% tax in the Union Budget, the elimination of the ‘Google tax,’ and the withdrawal of the 6% digital services tax. He warned that the government seems poised to concede to Trump’s demands.
He further urged the government to engage with opposition parties, even if it does not wish to hold a public discussion, in order to develop alternative strategies. “At this moment, only the external affairs minister and possibly the commerce minister, who recently visited the US, have any insight into what’s happening. Maybe the agriculture or industries ministers know, but we have no clarity on whether concessions are being made on agriculture, industrial goods, or intellectual property,” he said.
Chidambaram stressed that India must prioritize its own interests while collaborating with other nations affected by US tariffs. He pointed out that global trade rules, including those set by the WTO, multilateral agreements, and international laws, limit the scope for arbitrary tariff impositions.
“We must align with countries that have major stakes in agricultural, textile, and industrial exports to devise a unified approach. If Trump targets one country at a time with tariffs, it could devastate that nation’s economy. If he chooses India while sparing others, our economy could collapse within three to six months,” he warned.
To prevent such a scenario, Chidambaram called for proactive measures to counter selective tariff impositions by the US.
