“India is among the highest tariff nations in the world. It’s been very hard to sell into India, but now they are offering us a deal where they will literally charge no tariff,” Trump said, referencing talks with Indian officials and U.S. Treasury Secretary Scott Bessent.
Trump has long criticized India’s protectionist policies, highlighting tariffs such as 70 percent on automobiles, 20 percent on networking equipment, and 80 percent on rice imports. Beyond tariffs, the White House has also raised concerns over India’s non-tariff barriers, including complex import regulations that make it difficult for American companies to do business there.
While India’s Ministry of Commerce and Industry did not immediately respond to Trump’s remarks, the announcement signals a potential shift as India looks to secure a trade agreement within a 90-day window following Trump’s suspension of tariff hikes on trading partners in April.
Despite the U.S. becoming India’s largest trading partner in 2024, India only ranks tenth among America’s top trading partners. The U.S. trade deficit with India widened to $45.7 billion last year, fueled by American imports of Indian pharmaceuticals, smartphones, and apparel. U.S. exports to India primarily include energy products, chemicals, and aerospace components.
Trump’s aggressive tariff strategy, including a baseline 10 percent levy on all imports and a looming 26 percent “reciprocal tariff” on Indian goods, has pushed several countries—including India—to seek more favorable terms with the U.S.
Last week, Trump secured a framework trade deal with the UK, lowering some tariffs, and on Monday, the U.S. and China agreed to roll back tariffs for an initial 90-day period, marking a major development in the global trade landscape.
Trump, who has repeatedly called out India’s tariffs and taxes, said he told Indian Prime Minister Narendra Modi directly, “You’re not treating us right.” According to White House estimates, eliminating India’s trade barriers could increase U.S. exports by at least $5.3 billion annually, though those figures have not been independently verified.
As global trade realigns under Trump’s policies, India is positioning itself as a major manufacturing and export hub, particularly in smartphones and electronics. However, Trump’s comments make it clear that he expects significant concessions from India to ease the widening trade gap.
