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Trump says India offered to remove tariffs on US goods

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Trump says India offered to remove tariffs on US goods

by Daisy Mae D.
09/02/2025
in Tariffs & Duties

US President Donald Trump has stated that India has offered to reduce tariffs on American goods “to nothing,” even as he criticized the long-standing trade balance between the two countries, calling it “a one-sided disaster.”

The remarks come in the wake of new US tariffs of up to 50% on imports from India, which took effect last week. The measures, according to Washington, are aimed at recalibrating trade relations and encouraging fairer access for American businesses in the Indian market.

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India has not yet issued an official response to Trump’s latest comments. However, Indian officials have consistently argued that the tariffs imposed on its exports are “unfair, unjustified and unreasonable.” New Delhi has also highlighted its willingness to pursue broader trade engagements. Last week, Commerce Minister Piyush Goyal reiterated that India “will neither bow down nor ever appear weak” in its global economic partnerships, while adding that the country remained open to negotiating free-trade agreements with willing partners.

Trump underscored what he views as a significant imbalance in trade volumes. “What few people understand is that we do very little business with India, but they do a tremendous amount of business with us. In other words, they sell us massive amounts of goods, their biggest client, but we sell them very little. Until now, a totally one-sided relationship, and it has been for many decades,” he wrote.

The timing of Trump’s remarks coincided with Indian Prime Minister Narendra Modi’s participation in the Shanghai Cooperation Organisation (SCO) summit in Tianjin. The multilateral forum, which includes China, India, Pakistan, and Iran among its members, is often viewed as a platform for emerging economies to strengthen cooperation and broaden regional influence.

At the summit, Modi met Chinese President Xi Jinping and also engaged in discussions with Russian President Vladimir Putin. Modi later described his exchange with Putin as “insightful,” sharing an image of the meeting and noting the importance of dialogue in international partnerships.

The United States has traditionally been one of India’s most significant trading partners, with bilateral trade spanning goods and services across industries ranging from technology to agriculture. Until recently, the US ranked as India’s largest trading partner, underscoring the economic weight of the relationship. Analysts warn, however, that the new tariffs and heightened rhetoric may carry implications for India’s export competitiveness, supply chains, and broader growth trajectory as the world’s fifth-largest economy.

Observers note that while Trump’s comments highlight longstanding concerns about market access, India’s position underscores the complexity of balancing domestic needs with international trade obligations. How the two countries navigate this moment could shape not only their bilateral trade ties but also broader global trade dynamics.

#SupplyChainNews #GlobalTrade #EconomicUpdate #IndiaUSRelations #TariffTalks


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