Chidambaram warns Centre on trade and tariff wars
Chidambaram Criticises Centre, Cautions Against ‘Tariff and Trade Wars’
- By Gurmehar --
- Friday, 28 Mar, 2025
Former finance minister and senior Congress leader P Chidambaram has warned that India should take a strong stand against the possibility of a tariff and trade war. He urged the government to clarify its response to US President Donald Trump’s threat of imposing tariffs on Indian goods starting April 2.
While speaking in the Rajya Sabha during a discussion on the Finance Bill, Chidambaram said that the recent reductions in customs duties on items like motor vehicles and toys were not out of goodwill but were influenced by Trump’s policies. He called this situation the "Trump Effect," suggesting that the Indian government was forced to reduce these tariffs due to external pressure.
He also criticized the government for not discussing this issue in Parliament or consulting the Opposition. According to him, if a tariff war starts, it will harm not only India but also the global economy. He warned that it could lead to lower exports, reduced foreign investment, higher inflation, and a weaker Indian currency.
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Impact on India's economy
Chidambaram said that India should work with countries like Canada, Britain, France, Germany, and Japan to stop the trade war. He also pointed out that the country is already struggling with issues like unemployment, rising prices of food and healthcare, stagnant wages, and increasing household debt.
He accused the government of cutting funds for important sectors like health, education, social welfare, agriculture, and rural development. He argued that these budget cuts would make life even harder for ordinary people.
Finance Bill passed
Meanwhile, finance minister Nirmala Sitharaman presented the Finance Bill 2025 in the Rajya Sabha for approval. The Lok Sabha had already passed the bill on Tuesday.
