Highlights:
-
Trump says India “kills us with tariffs” but has now offered “no tariffs” to America.
-
He claims tariffs were necessary to force Delhi into concessions.
-
Cites Harley Davidson example, where 200 per cent duty blocked U.S. motorcycles.
-
U.S. imposed 50 per cent duties on India over Russian oil purchases.
- Advertisement - -
India calls the tariffs “unjustified,” vows to protect farmers and small industries.
President Donald Trump has fiercely criticized India for its high tariffs on American goods, accusing the country of “killing us with tariffs.” Speaking on The Scott Jennings Radio Show on Tuesday (2), Trump singled out India alongside China and Brazil as nations that impose steep tariffs on US goods while benefiting from the American market.
Trump claimed he understands tariffs better than anyone, asserting that with his administration’s tariffs, India has now offered to eliminate tariffs on US products altogether. He insisted that without such tariffs from the US side, India would never have made this offer, underscoring his belief in tariffs as a tool to ensure economic strength.
Trade relationship described as ‘one-sided’
Trump described the US-India trade relationship before his presidency as “one-sided,” with India charging the US some of the highest tariffs in the world. He explained that India exported massive amounts of goods to the US without facing equivalent tariffs on American exports.
This led to a trade imbalance where US products were unable to compete in India, exemplified by Harley Davidson’s inability to sell motorcycles due to a 200 per cent tariff, which eventually prompted the company to open a plant in India.
Recent tariff policy and its impact
Trump reiterated that under his administration, the US imposed reciprocal tariffs of 25 per cent plus an additional 25 per cent penalty tariff linked to India’s continued purchases of Russian oil.
Together, these tariffs raised the total duties on Indian imports to 50 per cent effective August 27, 2025, one of the steepest tariff rates globally. The tariffs impact a broad range of products such as apparel, gems, jewelry, footwear, furniture, and chemicals but exempt critical sectors like pharmaceuticals and semiconductors.
India’s response and economic stakes
India condemned the US tariffs as “unjustified and unreasonable,” emphasizing its sovereign right to make independent economic decisions. Prime Minister Narendra Modi has stood firm on protecting the interests of farmers, small-scale industries, and cattle rearers from external pressure.
India’s External Affairs Minister S. Jaishankar criticized the US for targeting India’s energy ties with Russia while exempting China and the EU, which import larger quantities of Russian crude oil.
Bilateral trade overview
In 2024-25, US-India bilateral trade reached USD 131.8 billion, with India exporting USD 86.5 billion worth of goods to the US and importing USD 45.3 billion. Despite multiple negotiation rounds, no agreement has been reached to reduce tariffs to levels comparable with US trade partners such as the EU, Japan, and South Korea.
Analysts warn that the heavy tariffs jeopardize thousands of Indian exporters and could impair India’s ambitions to become a global manufacturing hub.
Geopolitical and strategic implications
The trade tensions come amid broader diplomatic strains between Washington and New Delhi, with reported pauses in major Indian defence procurement from the US, though India officially denies these claims. The escalating dispute threatens the strategic partnership, which is crucial for regional security and global cooperation frameworks like the Quad.
