The relationship between the United States and India, particularly in trade, has always been complex, even more so under the Trump administration. Characterized by a mix of negotiation, pressure, and occasional disputes, the question remains: Is India getting a fair deal under Trump's trade tactics?
Since Trump's return to the White House, trade between the two nations has seen both progress and setbacks. Trump has not shied away from using tariffs as a negotiating tool. In April 2025, he imposed tariffs of up to 27% on Indian goods. However, these tariffs were put on hold for 90 days, ending on July 9th, giving both countries time to negotiate a trade agreement.
One of Trump's major claims is that India imposes high tariffs. In May 2025, he declared that India had offered to drop all tariffs on goods imported from the US. However, this was quickly disputed by India's Foreign Minister S Jaishankar, who clarified that talks were still ongoing and nothing was final. Ajay Srivastava, a trade expert based in Delhi, suggested that India might offer to make 90% of US exports tariff-free from day one, excluding autos and agriculture, but with the condition of strict reciprocity.
Despite the tariff disagreements, the US remains India's largest trading partner. In 2024-25, bilateral trade was valued at $131.84 billion. India had a trade surplus of $41.18 billion in goods with the US during that period, a figure Trump aims to reduce. India is seeking the elimination of the 26% reciprocal tariff and duty-free entry for labor-intensive export items like textiles and footwear in the US.
Recently, trade negotiations have entered the final stage. Commerce Minister Piyush Goyal met with export promotion councils in May 2025, and a US trade team is expected to visit India in June, with the goal of finalizing an interim trade deal by July 9th. This interim deal is expected to cover a limited range of goods and services, with the US seeking market access in India for agricultural products.
Adding another layer to the situation, Apple's decision to shift iPhone production from China to India has become a point of contention. Trump stated that if iPhones built in India are sold in the US, they would be subject to a 25% tariff. He also reportedly told Apple CEO Tim Cook that he prefers Apple to expand manufacturing in India only if it's to serve the Indian domestic market.
India has also taken a firm stance by challenging what it describes as "arbitrary and discriminatory" tariffs on Indian pharmaceutical and auto exports at the World Trade Organization (WTO). This move indicates that India is shifting from a defensive position to a more assertive one in its trade relationship with the US, drawing inspiration from China's approach.
Despite these tensions, there are positive signs. A report by India's finance ministry suggests that a successful trade deal with the US could significantly boost exports and widen US market access for Indian goods. The report noted that such a deal could turn current challenges into opportunities. The US has agreed to grant market access to steel and aluminum products under the exclusion process of Section 232 of the Trade Expansion Act 1962. The US Department of Commerce will clear 70% of steel and 80% of aluminum applications for products originating in India.
Overall, whether India is getting a fair deal under Trump's trade tactics is a matter of perspective. Trump's approach is undoubtedly transactional, prioritizing American interests and using tariffs as leverage. India, on the other hand, is seeking a balanced and reciprocal agreement that promotes its export interests and economic growth. The ongoing negotiations and the willingness of both sides to engage suggest that a mutually beneficial outcome is possible, but it will require careful consideration of each other's concerns and priorities.
