Despite what he characterizes as "one-sided" trade practices, U.S. President Donald Trump maintains that the United States gets along "very well" with India. Trump has recently defended his administration's decision to impose tariffs, some as high as 50%, on Indian goods.

Trump's defense of the tariffs centers on the idea that India has, for many years, charged the U.S. "tremendous tariffs," which he claims are among the highest in the world. In his view, this has created an unbalanced trade relationship where India exports significant amounts to the U.S., while American businesses face barriers when trying to sell their products in India. He has stated that the U.S. was "not doing much business with India, but they were doing business with us because we were not charging them foolishly".

To illustrate the impact of these tariffs, Trump has often cited the example of Harley Davidson motorcycles, noting that the company faced a 200% tariff when trying to sell its motorcycles in India. To avoid these tariffs, Harley Davidson established a manufacturing plant in India. Trump suggests that his policies are incentivizing companies to move production to the U.S. to avoid tariffs, noting that "thousands of companies are coming into the U.S., car companies, AI,".

The recent imposition of tariffs, which includes a 25% "reciprocal" tariff and an additional 25% penalty related to India's continued imports of Russian oil, has raised concerns about the future of U.S.-India relations. India has criticized the tariffs as "unfair, unjustified and unreasonable," asserting its right to strategic autonomy in its energy policy. Despite the trade tensions, the U.S. remains a key partner for India in technology, investment, and defense.

In 2024, the total trade in goods and services between the U.S. and India was an estimated $212.3 billion, an increase of 8.3 percent from 2023. The U.S. goods trade deficit with India was $45.8 billion in 2024. While Trump has described the U.S.-India relationship as "one-sided", India has a significantly higher trade deficit with countries like China and Vietnam.

Despite the current tensions, there have been indications of potential de-escalation. Trump said that India has offered to cut tariffs to zero, though he added, "it's getting late". Commerce Minister Piyush Goyal has expressed hope that the two countries could conclude a Bilateral Trade Agreement by November 2025, though he also acknowledged that "a little bit of geopolitical issues" have delayed progress.