President Donald Trump criticised India’s trade policies in a Truth Social post on Monday (September 1), describing the economic relationship between the two countries as “totally one sided” and a “disaster” for the United States.
Trump argued that India has long benefited from selling large volumes of goods to the US while restricting American companies from entering its market.
“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us,” Trump wrote. “In other words, they sell us massive amounts of goods, their biggest ‘client,’ but we sell them very little.”
Tariff criticism
The President blamed India’s high tariffs for limiting US exports.
“Until now a totally one sided relationship, and it has been for many decades,” he said. “The reason is that India has charged us, until now, such high Tariffs, the most of any country, that our businesses are unable to sell into India. It has been a totally one sided disaster!”
Oil and defense ties with Russia
Trump also noted India’s continued reliance on Russia for energy and defense equipment.
“India buys most of its oil and military products from Russia, very little from the U.S.,” he wrote.
Tariff cuts ‘too late’?
According to Trump, India has recently signaled willingness to reduce tariffs, but he suggested the move may not be enough.
“They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago,” he said, adding: “Just some simple facts for people to ponder!!!”
Trump doubles duties on Indian goods
The United States has raised tariffs on Indian exports to as much as 50%, a move that has sparked strong criticism from New Delhi. The steep duties, announced by President Donald Trump, include a oil-11756253730854.html" data-vars-page-type="story" data-vars-link-type="Manual">25% reciprocal tariff and an additional 25% levy on India’s purchases of Russian oil, making them among the highest Washington has imposed on any nation.
Impact on Indian exporters
The new tariffs, effective from August 27, are expected to hit India’s textiles, gems and jewellery, seafood, chemicals, steel, aluminium, and copper sectors the hardest. According to SBI Research, around $45 billion worth of exports will be impacted.
The US is India’s largest export destination for textiles and accounts for nearly a third of India’s $28.5 billion gems and jewellery shipments.
Services and pharmaceuticals remain insulated from the new duties due to exemptions, offering some relief to IT majors such as TCS, Infosys, Wipro, HCL, and Tech Mahindra.
India’s response: “Will not bow down”
India has denounced the tariffs as unjustified and unreasonable. Prime Minister Narendra Modi has said he will not compromise on the interests of farmers, livestock rearers, and small-scale industries, even as pressure mounts.
Commerce and Industry Minister Piyush Goyal said: “If somebody wants to have a good free trade agreement, we will always be ready. But if somebody discriminates, we will never bow down, nor will we ever be weak.”
Bilateral trade pact in limbo
India and the US have been negotiating a bilateral trade agreement (BTA) since March, with five rounds of talks completed. The sixth round, scheduled for August 25, was deferred after the tariff hike. Washington is pressing for greater access to India’s agriculture and dairy markets, while New Delhi seeks tariff reductions.
Global context and legal challenges
The tariffs are part of Trump’s broader use of duties as a policy weapon, disrupting global trade flows. The additional levies on India were introduced in line with Washington’s efforts to pressure Moscow over its war in Ukraine by discouraging purchases of Russian crude.
Meanwhile, a divided US appeals court recently ruled that most of Trump’s tariffs are illegal, though they remain in effect until October 14 to allow for an appeal to the Supreme Court.
