Trump critical of US-India trade balance after Modi knocks back tariff deal claims

Donald Trump called out India’s trade practices just hours after Prime Minister Narendra Modi returned from China. Trump said the United States was stuck in what he described as “a totally one-sided disaster” when it comes to trade with India.

He posted on Truth Social that India had once offered to slash tariffs to zero, but now it was “getting late” and that the move should’ve happened “years ago.”

This all came after Modi met with Chinese President Xi Jinping at the Shanghai Cooperation Organization summit in Tianjin, held between August 31 and September 1.

Trump’s complaints weren’t entirely vague. He pointed directly at India’s high import tariffs and its continued oil and arms trade with Russia, arguing that American companies are blocked from selling into the Indian market while Indian goods flood U.S. shelves.

Trump points to Russian oil and weapons as sticking points

Trump wrote, “The reason is that India has charged us, until now, such high Tariffs, the most of any country, that our businesses are unable to sell into India.” He added, “It has been a totally one sided disaster!”

He didn’t give a date for when India allegedly offered to drop its tariffs but made it clear he believes the offer came far too late.

The U.S. imposed 50% tariffs on Indian goods in response to what it sees as unfair trade practices. Last month alone, Washington added a 25% secondary duty, targeting India for continuing to purchase Russian oil. India rejected the move and described the new duties as “unfair, unjustified and unreasonable.” That came directly from India’s response after the announcement.

Tensions have been building for months. Relations between Washington and New Delhi have taken a hit, despite more than two decades of warming ties. Several American officials have recently raised concerns about India’s ties to Russia. But India didn’t stay quiet. It pushed back, pointing out that the same countries criticizing it are also still doing business with Russia.

India’s Ministry of External Affairs released a statement last month saying, “It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them].”

That was a direct jab at both the U.S. and the European Union.

China meeting happens as trade talks collapse

While the U.S. applied new tariffs, Modi was in China meeting with Xi. Both leaders spoke about cooperation and said they wanted to be partners instead of rivals. But that didn’t go unnoticed in Washington. Treasury Secretary Scott Bessent downplayed the meeting, calling the SCO summit “performative,” according to Reuters.

Trade talks between India and the U.S. aren’t moving. In May, India proposed a deal: no tariffs on steel, auto parts, and pharma products from either side, but only up to a certain limit. It was described as a “zero-for-zero” proposal. That deal didn’t happen, and the 50% tariff followed soon after.

Commerce Minister Piyush Goyal said Tuesday that India is still trying to negotiate a trade deal. “We are in dialogue with the US for a bilateral trade agreement,” Goyal said while speaking at an event in New Delhi. But there’s no formal negotiation happening right now. A U.S. team was supposed to visit India in August, but that trip was canceled.

According to Bloomberg News, informal communication between both sides is still ongoing, but no one’s talking about timelines or next steps. Despite all the back-and-forth, no deal is on the table, and both governments are stuck with rising tariffs, missed opportunities, and cold diplomacy.

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