Opposition MPs Demand Clarity on India's Response to US Tariff Threats in Rajya Sabha

Opposition MPs expressed concerns over US President Donald Trump's tariff threats. Senior Congress leader P Chidambaram urged the government to clarify India's stance, highlighting the lack of parliamentary discussion or opposition consultation. Initiating a debate on the Finance Bill 2025 in the Rajya Sabha, Chidambaram warned that a trade war could depress exports, reduce FDI, increase inflation, and depreciate the currency.

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Chidambaram emphasised India's need to align with countries like Canada, Britain, France, Germany, and Japan to prevent a tariff and trade war. Referring to Trump's statement about imposing tariffs from April 2, he questioned the government's response and criticised the absence of policy statements or discussions in Parliament.

Concerns Over Tariff Impacts

Congress leader Rajeev Shukla voiced alarm over impending trade tensions, warning of a significant tariff burden post-April 1. He criticised reduced state funding and advocated for increased health and infrastructure expenditure. Sagarika Ghose from TMC warned of a "tsunami" of reciprocal tariffs from April 2, potentially devastating India's export earnings.

Ghose cited a report indicating that 87% of total exports worth USD 66 billion could be affected. She highlighted that industries employing many Indians might lose US market share. Additionally, she criticised demonetisation policies, citing cash recovery from Justice Yashwant Varma's residence as evidence of its failure.

Tax Burden and Policy Criticism

AAP MP Raghav Chadha highlighted the growing tax burden on citizens, stating taxes are imposed at every life stage without quality services in return. He noted that even sweets celebrating a child's birth attract a 28% tax. RJD MP AD Singh demanded GST slab rationalisation and questioned policy formulation without Census data.

Singh argued that income tax concessions benefit only a small population segment. He claimed policies are influenced by elite groups like the Bombay club. CPIM MP John Brittas echoed this sentiment, suggesting South India is disadvantaged compared to North India.

Sector-Wise Development Vision

YSRCP leader Ayodhya Rami Reddy Alla praised the government's discipline but stressed the need for a comprehensive sector-wise development vision for the next 25 years. He emphasised aligning planning and expenditure within a 3% deviation. Abdul Wahab IUML called for increased MPLAD funds and regulation of NBFC banks in Kerala.

Wahab also expressed concern over the closure of 50% of startups and the 18% GST on used cars. Responding to opposition remarks, BJP's Kunwar Ratanjeet Pratap Narayan Singh stated that discussions on tariffs could only occur post-implementation after April 2.

Diverse Opinions on Tariff Effects

BJP's Singh pointed out that earlier calls were for maintaining US relations; now there's opposition when PM Modi seeks trade benefits through improved ties. NCP MP Prafful Patel argued that tariff imposition wouldn't impact India significantly as it is a net exporter to the US.

The debate saw participation from Congress's Renuka Chowdhury, BJP's Dharmshila Gupa, and AAP's Vikramjit Singh Sahney. The discussions highlighted diverse opinions on potential impacts and government responses to US tariff threats.