US president Donald Trump slammed the US-India trade relationship as a “one-sided disaster” hours after Indian prime minister Narendra Modi met Chinese president Xi Jinping and Russian President Vladimir Putin at the Shanghai Cooperation Organisation (SCO) summit.
Trump’s remarks, made on Truth Social, criticized India for imposing high tariffs on American goods while selling large volumes of products to the US market.
US-India trade imbalance and tariffs
Trump asserted that while India sells “massive amounts of goods” to the US as its biggest client, American businesses have had limited access to the Indian market due to India’s steep tariffs—“the most of any country.”
He called India’s trade policies a “totally one-sided” relationship that has persisted for decades. Trump also noted India’s reliance on Russian oil and military imports rather than American products, adding that India’s recent offer to eliminate tariffs “comes too late”.
Economic data underpin Trump’s concerns. India’s trade deficit in merchandise reached $27.35 billion in July 2025, its widest in eight months, as imports surged faster than exports before US tariffs on Indian goods intensified.
While exports to the US rose by over 21 per cent from April to July 2025, imports from the US also increased, maintaining a significant imbalance against the US. The US goods trade deficit with India was $45.8 billion in 2024, marking a nearly 6 per cent increase from the previous year.
Domestic and political backlash against Trump’s tariffs
Trump’s hardline tariff approach has drawn bipartisan criticism within the US. Democrats on the House Foreign Affairs Committee accused his administration of “singling out India with tariffs,” which they claimed hurt American workers and damaged the strategic partnership between the two countries. They pointed out that China, a far larger buyer of Russian oil, faced no similar punitive tariffs, highlighting what they perceive as inconsistencies and targeting of India.
India’s response and civil society opposition
Indian officials and civil society groups strongly reject Trump’s characterization. Foreign Minister Subrahmanyam Jaishankar defended India’s stance, asserting the sovereign right to make national decisions and emphasizing ongoing procurement of US military equipment under existing protocols.
Meanwhile, the Forum for Trade Justice, representing farmers, trade unions, and activists, warned that any US-India trade deal should not compromise India’s economic and developmental priorities or ecological security.
They advised India to remain “resolute and firm” during negotiations and resist undue US concessions. The forum highlighted hypocrisy in targeting India for Russian oil purchases while exempting larger buyers like China and the EU.
Geopolitical context and challenges
The timing of Trump’s trade criticism coincided with Modi’s strategic engagements at the SCO Summit, signaling India’s effort to balance relations with Russia and China amid US tariff pressures. Modi’s conversations with Putin and Xi underscored deepening ties despite external economic sanctions. The trade tensions reflect wider geopolitical contests involving India’s growing global influence and competing great power interests.
The US-India trade relationship remains complex, with bilateral trade surpassing $190 billion but shadowed by tariff disputes and strategic rivalries. India’s cautious stance on opening sectors like agriculture and its continued Russian energy ties complicate US efforts to broaden trade access.
Trump’s tariffs and rhetoric have strained the partnership, but India’s leadership emphasizes sovereignty, economic security, and balanced diplomacy as guiding principles for future negotiations.
In summary, Trump’s claim of a one-sided and disastrous US-India trade relationship underscores both real economic imbalances and deep political friction. India’s firm response combined with civil society advocacy signals resistance to US pressure, while Modi’s simultaneous diplomacy with global powers reflects India’s multifaceted approach to safeguarding its national interests amid evolving global dynamics.
