What will the government’s response be if US President Donald Trump presses tariffs on India, former Finance Minister P Chidambaram asked in Rajya Sabha on Thursday. “President Trump has made it clear that he will launch a tariff war on April 2. If he presses tariffs on India on April 2, 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 the Opposition parties. The government is holding its cards close to its chest, if it has any cards at all,” Chidambaram said, adding that this can be contrasted with the “openness” of Canada’s Prime Minister Mark Carney. He referred to the Centre’s move to remove the 6% equalization levy on digital ads, saying: “The Finance Minister announced some tariff reductions in February. Obviously, Mr. Trump is not satisfied.” “If concessions and flattery have failed, and if tariffs are going to be imposed on our exports on April 2, I want to know what is the government’s response,” he asked, adding that a tariff war will wreck the world economy and ruin the economies of developing countries. Chidambaram was speaking during a discussion to consider the Appropriation (No.3) Bill 2025 and The Finance Bill 2025. He also pointed to the government ‘s fiscal deficit. “The Finance Minister said that the endeavour will be to keep the fiscal deficit each year such that the Central government debt remains on a declining path as a percentage of the GDP. The intent is good. Looking at the performance, I’m afraid we have to reconsider that statement. When this government assumed office in 2014, the fiscal deficit was 4.5% at the end of the previous year. In the middle of this government’s tenure, it improved to 3.4% in 2018-19. But at the end of 2024-25, it is 4.8%. Effectively, the country’s economy is back to where it started. The government will say Covid happened, but every government faces crises,” he said. Opposition members raised matters of fiscal devolution, unemployment, and private consumption. Asking where the promise of fiscal devolution is, BJD member Sasmit Patra said: “Consider the allocation of Central funds for flagship schemes…States have very little say in policy. Is the Centre treating States as equal partners in India’s journey?” He called for reducing cesses and surcharges, allowing States more discretion over Central funds and greater autonomy in designing and implementing programmes, and ensuring “fair devolution” by honouring the “federal spirit of the Constitution”. TMC MP Sagarika Ghose said: “Where is achhe din? The economy faces a crisis of consumption. Private consumption is simply not reviving. Private investment has slumped.”
