Congress MP Shashi Tharoor has issued a stark warning over President Donald Trumps latest tariff escalation targeting Iran trade, saying it could devastate Indian exporters overnight. Speaking amid rising US-Iran tensions, the veteran diplomat-turned-politician highlighted how these penalties stack up to cripple businesses reliant on the American market.

Trumps recent Truth Social post slapped a fresh 25% tariff on nations dealing with Iran, layering onto Indias existing 25% baseline duties and another 25% tied to Russian sanctions—for a brutal 75% total on key goods. Tharoor, long vocal on trade inequities, stressed this isnt just tough talk: No Indian company will be viable exporting to the US at 75%, he said, pointing to competitors like Vietnam and Bangladesh enjoying far lower 15-19% rates. Indias $78 billion in annual US exports hangs in the balance, with labor-heavy sectors bearing the brunt. Tharoor noted these moves undermine the strategic partnership New Delhi has nurtured, especially as rivals undercut Indian prices in global supply chains.

Gems, jewelry, shrimp, leather, and marine products top the vulnerable list—categories where slim margins cant absorb triple-digit effective costs. Pharma might skirt the worst for now, but coastal hubs in Gujarat and Tamil Nadu face layoffs if orders dry up, echoing job losses from prior tariff waves. Tharoor flagged how this plays out unfairly: Indias been troubled by these tariffs from day one, urging a first-quarter 2026 bilateral deal to slash rates toward the UKs favorable 15% benchmark.

Fresh talks between External Affairs Minister S. Jaishankar and US Secretary Marco Rubio offer hope, with Tharoor calling on the incoming ambassador to prioritize fairness. Without it, he cautioned, Indo-US ties risk hollowing out amid energy needs from Iran and fierce trade competition. Exporters are already eyeing ASEAN and Europe pivots, but experts warn a prolonged standoff could spike unemployment and force diversification at huge cost. As Trump doubles down, Delhi faces a high-stakes balancing act in this tariff storm.

Disclaimer: This image is taken from NDTV.