Trump Slams India-U.S. Trade as ‘One-Sided Disaster’ Following Modi’s Visit to China

U.S. President Donald Trump has recently criticized India’s trade policies, calling them “a totally one-sided disaster.” This comment came after Indian Prime Minister Narendra Modi attended the Shanghai Cooperation Organization summit in China. Trump’s frustration seems to stem from the tariffs India imposes on U.S. goods while it continues to buy oil and arms from Russia.

In a post on Truth Social, Trump pointed out that India had offered to cut tariffs to zero. However, he claimed this should have happened “years ago” without specifying when the offer was made. The U.S. has raised tariffs on Indian exports, imposing a steep 50% tariffs last month for India’s purchase of Russian oil, which India has labeled as “unfair” and “unjustified.”

Data from the World Trade Organization reveals that in 2024, India imposed an average tariff of 6.2% on U.S. imports compared to just 2.4% levied by the U.S. on Indian goods. This disparity has caused tensions, as the U.S. feels its businesses are struggling to access the Indian market.

Relations between the U.S. and India have been increasingly strained in recent months. U.S. officials have voiced their concerns over India’s oil imports from Russia, while India has pointed out the hypocrisy of Western nations that also trade with Russia. India’s foreign ministry remarked on the contradictions, highlighting that those criticizing India engage in trade with Russia themselves.

In May, India proposed a “zero-for-zero” tariff deal with the U.S. This proposal covered steel, auto components, and pharmaceuticals, but no agreement was reached. This failed negotiation led to the U.S. imposing significant tariffs on Indian products.

While Modi met with Chinese President Xi Jinping at the SCO summit, signaling some partnership, the broader implications of these discussions remain uncertain. U.S. Treasury Secretary Scott Bessent dismissed claims that U.S. tariffs are bringing nations like India and China closer together, referring to the summit as “performative.”

Experts have mixed views on this shift in relations. Marko Papic, a chief strategist at BCA Research, suggests that improving ties could benefit India, especially in accessing critical technology for manufacturing. However, he also expresses concern that the U.S. may be losing its narrative in the global arena, allowing for a more multipolar world where China has significant influence.

As geopolitical dynamics shift, the ongoing trade tensions between the U.S. and India will be crucial to watch. Understanding these relationships could provide insights into future economic strategies and global partnerships.

For more detailed statistics on international trade, visit the World Trade Organization.

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