'We are completely in dark': Chidambaram asks Centre to spell out response to Trump's tariff war

Congress leader P Chidambaram. (File photo)

Former Finance Minister and senior Congress leader P Chidambaram on Thursday urged the Centre to clarify India’s stance on Donald Trump’s tariff war threats, criticising the lack of discussion in Parliament or consultation with Opposition parties over the matter.

He warned that if Trump starts picking out individual countries and applying different tariffs, the affected nations could be left to fend on their own. Chidambaram also said that India must stand with saner voices in the world such as Canada, Britain, France, Germany and Japan and collectively do everything to prevent a tariff and trade war, according to PTI.

During an interview with NDTV, Chidambaram said, "I mean, it can't be in uncertainty. Of course, Americans are uncertain, let's assume so. But you must have alternative scenarios. What if they take one step forward? What is our response? What if they take two steps backward? What is our response? And that response need not be made public to the whole world, but at least there must be a statement in parliament, or there must be a consultation with opposition parties. We are completely in the dark."

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This comes after US imposed a 25 percent tariff on all auto imports. Automobiles and car parts imported to the US would face a 25 percent tariff starting April 2. While India is not a big exporter of cars to the US, Tata Motors' luxury car subsidiary Jaguar Land Rover (JLR) might witness a hit with the new tariff policy.

Furthermore, Chidambaram claimed that not only the opposition parties, but most ministers also are in the dark about India's decisions.

"I think at the moment, only the external affairs minister and perhaps the commerce minister who went on a delegation to the US are privy to what is going on. I don't think other ministers know. I'm sure the agriculture minister does not know. I'm sure the industries minister does not know. But they are making concessions? I don't know. Are you making concessions on agriculture? Are you making concessions on industrial goods? Are you making concessions on intellectual property? I don't think anybody knows," the former Union finance minister said, NDTV reported.

He said that many countries are finding common ground in acknowledging that unilateral tariffs imposed by the US are unacceptable. He stated, "Canadian Prime Minister Mark Carney has taken his Parliament into confidence or at least the leaders into confidence. And he says we will coordinate with the European countries and respond to Trump's unilateral tariffs."

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"We must band together with countries which are in the world market for agricultural exports, textile exports, and industrial goods exports, and evolve a common approach. You see, if he [Mr Trump] picks one country at a time, and imposes tariffs, it will ruin the economy of that country," Chidambaram said in the NDTV interview.

"Suppose he picks India, and he leaves other countries out. Suppose President Trump picks India and says, 'these are the tariffs from goods exported from India', we'll be ruined. In a matter of three to six months, our economy will be ruined," he said.

Initiating a discussion on The Appropriation (No. 3) Bill, 2025 and The Finance Bill, 2025 that were moved in Rajya Sabha for consideration by Finance Minister Nirmala Sitharaman, Chidambaram cautioned that a tariff and trade war would lead to depressed exports, lower FDI, higher inflation and currency depreciation.

"What is the government's response? What is India's response? There has been no statement of policy, no discussion in Parliament, no consultation with Opposition parties. The government is holding its cards close to its chest, if it has any cards at all," Chidambaram said, PTI reported.

He further said, "A tariff war will lead to a trade war. The whole world will be hurt..." He also alleged that Sitharaman had announced customs duty reduction on items including motor vehicles, passenger cars, goods, transport vehicles, motorcycles, bicycles and even toys in the Union Budget 2025-26 under the pressure from Trump.

"Is this a genuine change of heart? Is it a genuine change of policy? I don't believe so. I think this is the effect of Mr Donald Trump. The Trump Effect has forced the government to reduce these duties," Chidambaram remarked.

(With inputs from PTI)