Economy

Trump said that while the U.S. has a good relationship with India, their trade ties have been unfairly one-sided.

Published On Wed, 03 Sep 2025
Anika Bhardwaj
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U.S. President Donald Trump recently described the trade relationship between the United States and India as “totally one-sided,” even as he acknowledged that both countries generally get along well. Trump pointed to India's high tariffs on American goods as a key reason why U.S. businesses have struggled to compete in India’s market. He remarked that for many years India imposed what he called the highest tariffs in the world, sometimes up to 100%, making it nearly impossible for American companies to export to India.

Trump gave examples such as Harley Davidson, which faced a 200% tariff on motorcycles in India, forcing the company to establish manufacturing plants inside India to avoid these steep duties. Meanwhile, Indian products flowed freely into the United States without similar barriers. Trump also highlighted India’s continued reliance on imports of oil and military supplies from Russia, contrasting it with the minimal purchases from the United States, which he said further worsened the trade imbalance.

The U.S. government recently imposed a 50% tariff on certain Indian imports, especially targeting sectors like textiles, leather, engineering goods, and chemicals, citing India's purchase of Russian oil despite U.S. opposition. Trump emphasized that India has now offered to reduce tariffs to zero, but he criticized the delay, saying such moves should have happened years ago to avoid what he labeled a “disaster” in trade terms.

Despite these tensions, Trump maintained that the overall U.S.-India relationship remains positive, stating they “get along very well.” However, he was firm on the necessity of addressing the trade imbalance to create fairer conditions for American businesses. The trade friction has complicated ongoing negotiations for a bilateral trade agreement that aims to double trade in goods and services between the two countries by 2030.

The situation has sparked debate with some U.S. analysts and politicians expressing concern that the tariffs risk undermining a strategic alliance crucial for countering global competitors like China. On the Indian side, officials have defended their tariff policies as necessary to protect local industries and have framed their energy ties with Russia as essential for meeting the country's large energy needs.

Overall, while the U.S. and India share a strong partnership on many fronts—including security and geopolitics—the trade relationship remains fraught with challenges. For sustainable growth in bilateral ties, finding a balanced trade framework that respects both nations' economic interests will be critical in the coming years. This evolving dynamic highlights the broader complexity of global trade policies and international diplomacy in today’s interconnected world.

This analysis offers insight into the delicate balancing act between maintaining strategic ties and resolving economic disagreements, an important story for readers interested in international trade, geopolitics, and U.S.-India relations. Keywords: Trump India trade, US India tariffs, India US trade imbalance, US India bilateral trade, India Russia oil imports, US trade policy India.

Disclaimer: This image is taken from AP.