US President Donald Trump has once again criticized India for imposing high tariffs on American goods, making it difficult for US businesses to sell their products in the country. Speaking to reporters at the White House, Trump claimed that India has now agreed to reduce these tariffs after being exposed for what he believes is an unfair trade practice.
“India charges us massive tariffs. You can’t even sell anything in India,” Trump said. He also accused several other countries, including China and the European Union, of taking advantage of the US through high tariffs.
His comments came after Indian Commerce Minister Piyush Goyal visited the US for trade talks with his counterpart, Howard Lutnick. This marks the third time in a week that Trump has criticized India’s tariff policies.
Trump’s Reciprocal Tariffs to Take Effect
Trump has long advocated for “reciprocal tariffs,” where the US imposes the same duties on imports from countries that have high tariffs on American goods. He confirmed that these tariffs would take effect on April 2.
“An eye for an eye, a tariff for a tariff,” he stated. He also reiterated past claims that India is a “tariff king” and a “big abuser” when it comes to trade.
During a joint press conference with Indian Prime Minister Narendra Modi last month, Trump admitted he did not necessarily blame India but described its trade policies as restrictive. “It’s very hard to sell into India because they have trade barriers, very strong tariffs,” he said.
Trump’s Tariff Pause: Relief or Just Delayed Pain?
Trump’s focus on trade imbalances has been a central theme of his economic policy. He believes that foreign countries have long exploited the US through unfair trade practices, and his administration is determined to rectify this. He has frequently pointed out that India’s auto tariffs exceed 100%, making it nearly impossible for US car manufacturers to compete in the Indian market.
The US-India Trade Deficit
In 2024, the total trade between the US and India stood at approximately $129.2 billion. However, the US had a significant trade deficit with India. While the US exported $41.8 billion worth of goods to India, imports from India amounted to $87.5 billion, resulting in a $45.7 billion trade deficit—an increase of 5.4% from 2023.
Trump sees this as a sign that India benefits far more from the trade relationship than the US does. His administration has been pushing for changes to reduce this gap and create what he calls a “fair trade system.” The deficit, he argues, is a reflection of long-standing trade policies that need urgent reforms.
The US President has emphasized that high tariffs not only harm American exporters but also make products more expensive for American consumers. He argues that reciprocal tariffs would create a level playing field and encourage more fair trade between nations.
India’s Response: A New Trade Agreement?
India has stated that it is open to reducing tariffs and strengthening trade relations with the US.
During Modi’s visit to the US last month, both countries agreed to negotiate a Bilateral Trade Agreement (BTA) aimed at increasing market access, reducing tariffs, and improving supply chain integration. Indian External Affairs Ministry spokesperson Randhir Jaiswal confirmed that discussions on the trade pact are progressing.
Commerce Minister Goyal’s recent visit to the US was part of these ongoing negotiations. According to reports, India is looking at lowering some of its high tariffs and addressing non-tariff barriers that make it difficult for American companies to enter the Indian market.
Trump’s administration sees this as a positive step but insists that any agreement must include substantial reductions in tariffs for US goods. While India acknowledges the importance of strong trade ties with the US, it is also keen on protecting its domestic industries.
As negotiations continue, the world is watching to see how these two economic giants resolve their differences and whether Trump’s pressure will lead to meaningful changes in India’s tariff policies.
