U.S. President Donald Trump has asserted that India has proposed to cut its tariffs on American goods to nothing, amid what he describes as a totally one-sided disaster in the current trade relationship with India.
The recent introduction of U.S. tariffs, which rose to 50% on Indian goods—including a 25% penalty linked to India's ongoing oil purchases from Russia—has stirred significant tension between the two countries.
Despite Trump's comments, India has remained silent on the specifics of these claims, although the escalating verbal exchanges over oil enrich bilateral relations that have reached an unprecedented low.
Trump's remarks coincided with Indian Prime Minister Narendra Modi's participation in the Shanghai Cooperation Organization (SCO) summit in Tianjin, where discussions with Russian President Vladimir Putin and Chinese President Xi Jinping occurred.
Washington has previously accused India of indirectly aiding Russia's military efforts in Ukraine by purchasing oil from them. Trump elaborated that India's economic ties favor Delhi more significantly than the reverse, emphasizing that India should have rectified the tariff situation years ago.
Indian officials have rejected the U.S. tariffs as unfair, unjustified and unreasonable, reaffirming their sovereignty in energy procurement.
Commerce Minister Piyush Goyal insisted that India will not yield nor appear vulnerable in international economic ties, expressing India’s readiness to explore free-trade agreements with responsive nations.
The tariffs have ignited concerns about potential repercussions for Indian exports and the overall growth of its economy, recently classified as the world’s fifth largest economy. As both leaders navigate these complexities through global diplomatic channels, the future of U.S.-India trade appears poised for critical reevaluation.