New Delhi [India], July 31 (ANI): Congress MP Shashi Tharoor on Thursday noted the impact of the 25 per cent tariff announced by US President Donald Trump on the Indian economy and termed the matter very 'serious', which will 'destroy' India's trade with America.

On the US President Trump's dead economy remark, Congress MP Shashi Tharoor told ANI, 'It's a very serious matter for us... 25, plus an unspecified penalty for our buying oil and gas from Russia, it could take it up to 35-45... There's even talk of a 100% penalty, which will destroy our trade with America... The trade negotiations are underway, and there is a possibility that it may come down. If it doesn't, it will damage our exports, because America is a very big market for us...

The Congress leader noted that the US administration has to take into consideration the 'needs' of the Indian government as well.

'On the other hand, if their demands are completely unreasonable, our negotiators have every right to resist... America has to understand our needs as well. Our tariffs on America are not that unreasonable. It's about 17% average. American goods are not priced competitively enough to sell in the Indian market...'

Earlier today, Former Union Home Minister and senior Congress leader P Chidambaram took a veiled dig at Prime Minister Narendra Modi and said that the 25 per cent tariff on all Indian exports to the United States and penalty for buying Russian oil is a 'big blow' to India's trade with the US.

Chidambaram called the tariffs a 'big blow' for India's trade, and also argued that they are 'a clear violation' of the World Trade Organisation's rules.

In a post on X, Chidambaram said, 'The 25 per cent tariff on all Indian exports to the United States PLUS penalty for buying Russian oil is a big blow to India's trade with the U.S. 'Dosti' is no substitute for diplomacy and painstaking negotiations The tariff imposed by the U.S. is a clear violation of the WTO rules.'

This comes after US President Donald Trump, in a social media post on his Truth Social Account, announced 25 per cent tariffs on India starting August 1.

Trump also said India will face additional penalties for purchasing oil from Russia.

'Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!', Trump posted. (ANI)