Trump Slams US-India Trade Imbalance After Modi Rejects Tariff Deal Claims
Trade tensions flare as former President Trump targets the US-India economic relationship—just as Prime Minister Modi pushes back on tariff negotiations.
Diplomatic Spat Goes Public
Trump didn’t hold back—calling out what he sees as a lopsided trade dynamic. Modi’s team, meanwhile, denies any tentative agreement was ever on the table. The exchange highlights ongoing friction between two major economies trying to rebalance terms.
No Numbers, Just Noise
While specifics weren’t disclosed, the back-and-forth signals deeper disagreements on trade policy. Tariffs remain a sticking point, and neither side appears ready to soften their stance. Classic negotiation theatrics—or a sign of bigger disruptions ahead?
Market Watchers Unimpressed
Another day, another geopolitical squabble that—shockingly—doesn’t immediately move markets. Because nothing says stability like public figures debating trade terms through the media.
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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