‘Don’t bend, don’t bluster’: Chidambaram urges Modi govt to hold firm amid Trump’s tariff threats and ceasefire questions

Former finance minister and senior Congress leader P. Chidambaram has urged the Modi government to tread a careful but assertive path in dealing with US President Donald Trump’s 25% tariff threat on Indian imports and an unspecified penalty linked to India’s defence and energy deals with Russia. Describing Trump as “impulsive,” Chidambaram cautioned against either capitulation or confrontation, recommending patient diplomacy instead.

In a wide-ranging interview with The Indian Express, Chidambaram also raised tough questions on the government’s handling of the Operation Sindoor ceasefire with Pakistan, challenged the official narrative around cross-border terrorism, and criticized the BJP for politicizing history and national security debates.

Tariff threat: ‘We must persevere’

Reacting to Trump’s sudden announcement of new tariffs and penalties, Chidambaram called for measured engagement with Washington. “We do not have to bend over. At the same time, we do not have to be defiant. Negotiating a trade agreement with the United States is painstaking, especially given our relatively higher taxes and the trade surplus of nearly $45 billion in our favor,” he said.

He pointed out that developed economies like Japan and South Korea find it easier to enter into trade deals with the US because of their open markets and broader export base — something India is still building. “It is more difficult for us, but we must persevere,” Chidambaram added.

Asked if India should retaliate with reciprocal tariffs, he dismissed such a move as impractical. “We are not in the position to do that. China may play that game, but we must stick to negotiations.”

Ceasefire questions: ‘Why did we accept it unconditionally?’

Turning to the three-day Parliament debate on Operation Sindoor, Chidambaram sharply questioned the Modi government’s decision to accept an immediate and unconditional ceasefire with Pakistan. “The armed forces fought bravely and made gains. Even if we chose a ceasefire voluntarily, why did we agree to it without any conditions?” he asked.

He suggested that multiple ministries — Defense, Foreign Affairs, Home and even Water Resources — should have jointly framed a list of demands before agreeing to any truce. “We seem to be frittering away the military gains,” he warned.

While refraining from directly accusing the US President of brokering the ceasefire, Chidambaram said New Delhi must at least clarify the facts to Parliament. “If President Trump had no role, the government must say so on record. Stand up in Parliament and rebut him. That is all Rahul Gandhi is asking.”

‘Don’t politicize history’

Chidambaram also dismissed BJP’s attacks on the Congress for being soft on Pakistan. “This is not a counterattack, it's irrelevance. If you start from 1947 and say the Congress gave away Pakistan or PoK, you clearly have no idea of history,” he said.

He rejected Home Minister Amit Shah’s reference to his earlier remarks suggesting that the Pahalgam attackers could be India-based terrorists. “All I said was: tell us what the NIA has found. There are infiltrating terrorists, but there are also India-based extremists. Just be transparent.”

Citing multiple examples — including the 2006 Mumbai train blasts and the 2011 Zaveri Bazaar attack — he underlined the presence of domestic terror cells. “I never doubted the NIA. I only asked for disclosure.”

On Malegaon and Mumbai acquittals: ‘Let courts decide’

Commenting on the recent acquittals in the 2006 Mumbai train bombing and the Malegaon blast case — two of India’s most high-profile terror investigations — Chidambaram declined to politicize the verdicts. “As a trained lawyer, I believe in judicial independence. The courts, the prosecution, and the investigating agencies must be allowed to do their job,” he said.

While noting that one of the cases had been transferred to the NIA during his tenure as Home Minister, he firmly stated that criminal trials must remain free of political commentary.