Donald Trump has once again voiced his displeasure with the trade relationship between the United States and India, stating that India had offered to reduce its tariffs to "nothing," but that it was "getting late". This statement comes amidst escalating trade tensions between the two countries, marked by increased tariffs imposed by the U.S. on Indian goods.

Trump's remarks, made on his social media platform Truth Social, paint a picture of a trade relationship heavily skewed in India's favor. He asserted that the U.S. does "very little business with India, but they do a tremendous amount of business with us". He also claimed that India's high tariffs have historically prevented American businesses from selling their goods in the Indian market, leading to a "totally one-sided disaster".

These comments follow the recent imposition of a 50% tariff on most U.S. imports from India, a move that has been interpreted as a punishment for India's continued purchases of discounted Russian oil. The U.S. argues that these purchases indirectly fund Russia's war against Ukraine. This tariff hike, which came into effect late August 2025, significantly increases the duties faced by Indian exporters and has raised concerns about potential damage to the Indian economy and disruptions to global supply chains.

India has been critical of the U.S. tariff hikes, calling them "unfair, unjustified, and unreasonable". Indian officials have also pointed out that other countries, including those in the European Union and China, also purchase oil from Russia, and that the U.S. itself continues to trade with Moscow. Some analysts view Trump's actions as a result of "personal pique" at not being allowed to mediate in the India-Pakistan conflict.

The timing of Trump's statement is also noteworthy, as it came on the same day that Indian Prime Minister Narendra Modi met with Chinese President Xi Jinping and Russian President Vladimir Putin at the Shanghai Cooperation Organisation (SCO) summit in China. This meeting, intended to discuss deepening ties between the three nations, has fueled concerns that Trump's aggressive stance on trade and foreign policy could push U.S. rivals to strengthen their cooperation, potentially diminishing American influence in the region.

The imposition of tariffs has the potential to significantly impact India's exports to the U.S., its largest export market. Key sectors like textiles, gems and jewellery, and seafood, which heavily rely on the American market, are particularly vulnerable. Exporters associations estimate that the tariffs could affect nearly 55% of India's $87 billion worth of merchandise exports to the U.S.. Moody's Ratings has also cautioned that the tariffs could slow India's economic growth and hinder its manufacturing sector development.

In response to the tariffs, India's trade minister has asserted that the country will not "bow down" to the U.S. and will instead focus on attracting new markets. However, the immediate impact of the tariffs is already being felt, with reports of layoffs in various sectors. The situation has been described as a "nightmare" by some Indian businesses, who fear further unpredictable tariff changes.

The U.S.-India trade relationship has seen substantial growth in recent years, with total trade in goods and services reaching an estimated $212.3 billion in 2024. However, the recent escalation in trade tensions threatens to disrupt this progress and create uncertainty for businesses in both countries. The future of the trade relationship remains uncertain, with analysts suggesting that even if the tariff dispute is resolved, trust in future relations with Washington may be the biggest casualty.