US President Donald Trump on Monday called the India-US trade relationship a “one-sided disaster,” claiming India has now offered to cut its import duties on American goods to “nothing.” But, he said, such an offer was “too late.”
Trump’s remarks came after his administration slapped a steep 50% tariff on Indian goods, a move that has raised tensions between the two countries. He also brought up India’s trade with Russia, once again using it as a reason for punishing India with higher duties.
Donald Trump Says India Wants to Continue More Trade With US
According to reports, Trump was referring to stalled trade deal talks between the two nations. India’s alleged offer to lower tariffs has not been confirmed by the Modi government.
Just a week earlier, US Treasury Secretary Scott Bessent had also voiced frustration, saying that the trade talks were moving too slowly despite beginning in April. He cited India’s oil imports from Russia as another reason for the tariffs, calling them a kind of “penalty.”
India, however, has been pushing back. The Modi government has objected to Washington’s demands, particularly when it comes to protecting Indian farmers from cheap US agricultural imports. Meanwhile, US officials have tried to pressure India with harsh comments. Trump’s adviser Peter Navarro even accused Indian oil refiners of profiteering by reselling Russian oil.
India Trying to Improve Relations with China
At the same time, Modi has been strengthening ties in Asia, visiting Japan and China, and emphasizing India’s long-standing partnership with Russia. Analysts say this could signal a shift in global trade alignments.
Back in Washington, Trump took to Truth Social to highlight what he sees as unfair trade. He wrote: “We do very little business with India, but they do a tremendous amount of business with us… India has charged us such high tariffs that our businesses can’t compete. It has been a totally one-sided disaster!”
The numbers back his concern about a trade gap. In 2024, India exported goods worth $87.3 billion to the US, while buying only $41.5 billion in return. That left a $45.8 billion surplus in India’s favor. In the first half of 2025 alone, Indian exports to the US stood at $56.3 billion, compared to imports of just $22.1 billion.
Donald Trump Reiterates India Importing Oil From Russia
Trump also pointed out that India continues to buy most of its oil and weapons from Russia, not the US. He insisted that India’s recent offer to cut tariffs to zero was too little, too late.
Some reports suggest Trump may also be frustrated because India has denied his claim that he forced it to halt “Operation Sindoor,” a military action against Pakistan earlier this year.
The new tariffs, first 25%, then an additional 25% last month, now total 50% on most Indian goods. They hit labor-heavy sectors the hardest, such as textiles, gems and jewellery, footwear, leather, shrimp, and other exports. Sectors like pharmaceuticals and electronics remain mostly exempt.
Experts warn the impact could be serious. India’s exports to the US, which touched $87 billion in 2024, may fall to around $50 billion by 2026. Economists also predict the Indian economy could lose nearly 1% of GDP, with large-scale job losses in industries that depend heavily on the US market.
