U.S. President Donald Trump renewed his criticism of India’s trade practices on Monday, describing the economic relationship as “a totally one-sided disaster” shortly after Indian Prime Minister Narendra Modi attended the Shanghai Cooperation Organization (SCO) summit in China.
In a post on Truth Social, Trump claimed that India had offered to reduce tariffs on U.S. goods to zero, but said such steps should have been taken “years ago.” He did not specify when the offer was made.
The comments come amid heightened trade tensions between the two countries, following the U.S. decision to impose tariffs of up to 50% on Indian exports last month. New Delhi has previously described the measures as “unfair, unjustified and unreasonable.”
Trump has repeatedly pointed to what he views as an imbalance in bilateral trade, arguing that India benefits significantly more than the United States. “India has charged us, until now, such high tariffs, the most of any country, that our businesses are unable to sell into India,” he wrote. “It has been a totally one-sided disaster!”
According to World Trade Organization data, India’s average tariff on U.S. imports in 2024 was 6.2% on a trade-weighted basis, compared to the 2.4% average tariff levied by the U.S. on Indian goods.
Discussions over a possible “zero-for-zero” tariff arrangement, which would have covered products such as steel, auto components, and pharmaceuticals, were reported earlier this year. However, negotiations did not lead to a deal, and higher tariffs were implemented instead.
At the SCO summit in Tianjin, Modi met with Chinese President Xi Jinping, where both leaders emphasized the importance of cooperation. Analysts noted that closer ties between India and China could provide economic benefits, though deep-rooted differences remain a challenge to long-term partnership.
U.S. Treasury Secretary Scott Bessent, commenting on the summit, said the event should be seen as “performative,” downplaying concerns that U.S. tariffs might drive India and China closer together.
Market observers believe India could gain strategically by expanding its partnerships with major economies. “The improvement of relations with India is a big deal. It allows India to access highly critical intellectual property that it needs if it is to industrialize and boost manufacturing,” said Marko Papic, chief strategist at GeoMacro Strategy BCA Access.
At the same time, experts caution that trade frictions with the U.S. could impact India’s export competitiveness and broader growth prospects, as Washington has traditionally been one of New Delhi’s most important trading partners.
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