New Delhi [India], August 7 : Congress MP Karti Chidambaram on Thursday slammed the Modi government, alleging that it had claimed a "special relationship" with US President Donald Trump, and said the recent imposition of an additional 25 per cent tariff by the United States shows a 'breakdown' in diplomatic ties.
Reacting to reports that the US has imposed an additional 25 per cent tariff on India due to its ongoing oil trade with Russia, Chidambaram told ANI, "The special relationship which the Indian administration claimed to have with President Trump, doesn't exist. After the first 25%, instead of coming down, it has only gone up. Which means that the relationship has broken down. I don't know the motive of President Trump, but this is not a formal relationship, and there seems to be no back-channelling, which is easing things up between India and America."
He urged the Centre to update Parliament on how it plans to respond to the economic impact of the US move.
"The government must take the Parliament into confidence and give a categorical statement on how they see things and what the effect will be on the Indian economy, and how they are going to counter it. If they are not able to take the Parliament into confidence, they must call an all-party meeting and take the leadership of all parties into confidence," Chidambaram added.
His remarks come amid reports that the US has raised duties on Indian products, including a 50 per cent tariff on pharmaceutical goods, due to India's ties with Russia in the energy sector.
Independent MP Pappu Yadav also expressed concern, warning of serious consequences for India's pharma sector. "Because of the 50% tariff that the US has imposed on us, our pharmaceutical industry will collapse. It is better that PM Modi stop supplying generic medicines to the US and call the US embassy to complain about the attack on our economy," he said.
On August 6, US President Donald Trump signed an Executive Order imposing an additional 25 per cent tariff on Indian imports. He cited national security and foreign policy reasons, arguing that India's purchase of Russian oil--directly or indirectly--poses an "unusual and extraordinary threat" to the United States.
In response, the Ministry of External Affairs (MEA) called the US action "unfair, unjustified and unreasonable," and said India will take "all actions necessary to protect its national interests."
A senior official from the US administration also told ANI that there is "no comparison" between India's increasing Russian oil imports and the limited amount of Russian goods imported by the US.
"There is simply no comparison between the hundreds of billions of dollars of growing Indian imports of Russian oil, and the modest U.S. imports of Russian goods, which amount to less than 1% of the value of Indian imports," the US official said.