US President Donald Trump asserted that India has proposed to remove all tariffs on US goods, describing the current trade dynamic as a ‘totally one-sided disaster.’ This claim emerges as bilateral tensions escalate following the recent implementation of steep US tariffs on Indian imports.
Trump made these comments in a post on Truth Social on Monday, highlighting what he perceives as an unfair trade relationship where India exports significantly more to the US than it imports. He emphasized that India sells massive amounts of goods to the US but buys very little in return, a situation he claims has persisted for decades.
The US imposed a 50% tariff on most Indian goods last week, which includes a 25% additional levy penalizing India for its continued purchases of Russian oil. Washington argues that this indirectly funds Russia’s war in Ukraine, a point Trump reiterated in his statement.
India has not officially responded to Trump’s latest allegation about the tariff offer. However, Commerce Minister Piyush Goyal recently stated that India ‘will neither bow down nor ever appear weak’ in trade negotiations, indicating a firm stance against US pressure.
The timing of Trump’s comments coincides with Indian Prime Minister Narendra Modi’s attendance at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China. There, Modi met with Chinese President Xi Jinping and Russian President Vladimir Putin, discussions that are seen as efforts to bolster ties amid US tensions.
Historically, the US was India’s largest trading partner, but the new tariffs threaten to impact India’s economy, which is the world’s fifth largest. Experts fear that exports could suffer, potentially slowing economic growth.
Trump’s criticism extends beyond trade, noting India’s reliance on Russia for oil and military supplies. He suggested that India should have reduced tariffs years ago to balance the relationship.
This standoff highlights a broader strategic shift, as India appears to be drawing closer to China and Russia while relations with the US deteriorate. The outcome could influence global trade patterns and diplomatic alliances in the region.
Looking ahead, the situation may prompt further economic measures or diplomatic dialogues to resolve the dispute. The US and India will need to navigate these tensions carefully to avoid long-term damage to their strategic partnership.