P Chidambaram:  Congress leader P Chidambaram has warned the Modi government that if our government has issued a warning regarding American tariff, then we should clarify our position on this, otherwise we will be ruined in 3-6 months.

P Chidambaram: Senior Congress leader P Chidambaram has demanded the government to clarify India's response to the threat of 'tariff war' by US President Donald Trump. He alleged that there has been no discussion on this issue in Parliament nor has there been any consultation with opposition parties. Chidambaram suggested that India should work together with countries that have similar interests and want to oppose Trump's policies. On this occasion, Chidambaram has warned that if Trump imposes different tariffs on different countries, then the affected countries will have to face it alone.

What will India do?

In an interview to a private channel, the Congress leader said that if the Indian government feels that America sometimes moves forward and sometimes retreats, then it should make a concrete policy for this. He said that the policies of the government cannot be uncertain. If America moves forward one step, what will be India's reaction? If it takes two steps back, what will India do? The government should have a concrete answer to this. He also said that there is no need to put such a policy in front of the whole world, but at least a statement should come in Parliament on this or there should be a discussion on it with the opposition parties.

Even the ministers of the government are unaware

He also claimed that most of the ministers of the government themselves are unaware of this issue. He questioned who is making a strategy to respond to the uncertain policies of America? He said that the government is taking sudden and unthoughtful decisions, like 2% tax was removed in the budget speech and a few days ago it was announced to abolish 6% digital service tax (Google tax). He asked how many more concessions is the government going to give?

25% tariff on automobiles will be a shock

The US decision to impose a 25 percent tariff on automobiles and car parts could be a major setback for the Indian automobile industry. Although India does not export many cars to the US, Tata Motors' luxury car company Jaguar Land Rover has a large share in the US market. Apart from this, the Indian auto parts industry will also be affected, as about 20 percent of its total revenue comes from exports, of which 27 percent comes from the US market alone.

Also gave the example of Justin Trudeau

Chidambaram said that India should give priority to its interests and join hands with other countries to oppose the unilateral policies of the US. He said that tariffs cannot be changed under international trade agreements, World Trade Organization (WTO) rules and other international laws. Citing the example of the Canadian Prime Minister, he said that he took his country's parliament into confidence and along with European countries made a plan to counter Trump's tariff policy. 

We should formulate a strategy with countries like us

Similarly, countries producing oil are also making their strategy together. India is a big exporter of agriculture, textiles and industrial goods, so it should also make a joint policy with such countries. He warned that if Trump increases tariffs on one country and leaves the rest, then the economy of that country will be badly affected. If India is targeted and the rest are exempted from tariffs, then India alone will have to bear the loss. Therefore, India should take steps in advance so that it does not have to face such a situation.