New Delhi, Mar 27 (PTI) Opposition MPs on Thursday raised concerns over US President Donald Trump’s tariff threats, with senior Congress leader P Chidambaram asking the government to clarify India's response, emphasising that there has been no discussion in Parliament or consultation with opposition parties on the issue.

Initiating a discussion on the Finance Bill 2025 in the Rajya Sabha, Chidambaram cautioned that a trade war would lead to depressed exports, lower FDI, higher inflation and currency depreciation.

He said 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.

Referring to Trump's statement that the US will impose tariffs from April 2, the former finance minister said, "What is the government's response? What is India's response? There has been no statement of policy, no discussion in Parliament, and no consultation with Opposition parties. The government is holding its cards close to its chest if it has any cards at all".

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

Congress leader Rajeev Shukla expressed alarm over the impending trade tensions, warning of a "substantial tariff burden" after April 1.

He criticised the government for reducing state funding and advocated for increased expenditure on health and infrastructure.

Expressing concerns over the tariff issue, Sagarika Ghose (TMC) said, "...A Tsunami is coming on April 2. A new round of reciprocal tariffs is about to be announced by the Donald Trump administration and could prove devastating for India's export earnings".

Citing a report, she said 87 per cent of total exports worth as much as USD 66 billion could be hit. Industries employing lakhs of Indians will suddenly lose market share in the US.

Ghose also said that the alleged recovery of piles of cash from the residence of Justice Yashwant Varma on March 14 is an example of the failed policy of demonetisation and asked if Prime Minister Narendra Modi is ready to face punishment to be decided by people for its failure.

The TMC leader said that at the time of demonetisation, the Prime Minister had said if his policy was wrong, people could give him any punishment they wished.

"Is the prime minister ready to face the punishment of the people? ...because these piles of cash are a stark example that the policy of demonetisation has resoundingly failed. This government is a failed government," she said.

AAP MP Raghav Chadha highlighted the growing burden of taxes on the common man and said that from birth to death, one has to pay tax at every step without getting any good quality service in return.

"Tax to live, tax to die and tax on every breath!" Chadha said, adding that the burden of tax begins even before a child opens their eyes as sweets to celebrate the birth attract 28 per cent tax.

Rashtriya Janata Dal (RJD) MP AD Singh also demanded the rationalisation of GST slabs.

Singh said the concession given in the income tax by the Union government in the Budget is helping a very small section of the population.

The RJD leader questioned how government policies are being formulated without the Census being conducted.

"Policies in the country are influenced by the 'Bombay club'," he said.

He added that the situation was the same under the previous Congress-led UPA government.

Meanwhile, CPI(M) MP John Brittas said, "I don't know if it is the Bombay club, Nagpur club, or Gujarat club, but this is heavily loaded against Kerala and South India". He said that South India has become a "colony" of North India.

YSRCP leader Ayodhya Rami Reddy Alla, while praising the government as "disciplined and hardworking", urged the need for a comprehensive sector-wise development vision over the next 25 years.

He stressed the importance of aligning planning and expenditure within a 3 per cent deviation.

Abdul Wahab (IUML) demanded an increase in the MPLAD funds and a check on NBFC banks mushrooming in Kerala.

He also expressed concerns over the closing down of 50 per cent of startups in the country and the 18 per cent GST imposed even on used old cars.

Responding to the Opposition remarks, Kunwar Ratanjeet Pratap Narayan Singh (BJP) said, "Until the tariff is not implemented, what speech or what mention can anyone make on it. We will be able to talk about it only after it is implemented after April 2".

Earlier it was said that India should maintain relations with America, but now when Prime Minister Modi is talking about the benefits that India can get for trade by improving relations with the US, the Opposition has an issue, he pointed out.

Nationalist Congress Party MP Prafful Patel said the tariff imposition would not impact India as we are a "net exporter" to the US.

Congress' Renuka Chowdhury, Dharmshila Gupa (BJP) and Vikramjit Singh Sahney of the AAP also participated in the debate. PTI AO BAL