Washington, D.C., March 9, 2025 – The simmering tensions over trade between India and the United States escalated this week as U.S. President Donald Trump doubled down on his criticism of India’s tariff policies, vowing to impose reciprocal tariffs to level the playing field. Speaking from the White House on March 7, Trump singled out India as one of the world’s “biggest tariff chargers,” claiming that its high duties have long restricted American businesses from accessing the Indian market.
“India charges us massive tariffs. Massive. You can’t even sell anything in India—it’s almost restrictive,” Trump said during a press interaction. “They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done.” His remarks, which came amid a broader push for his “Fair and Reciprocal Plan” on trade, have reignited debates about the future of Indo-U.S. economic relations just weeks into his second term, which began on January 20, 2025.
Trump’s latest salvo follows a series of statements and actions signaling his intent to overhaul global trade dynamics. On February 13, hours before a bilateral meeting with Indian Prime Minister Narendra Modi at the White House, Trump announced plans for sweeping reciprocal tariffs on all U.S. trading partners, with no exemptions. “Whatever you charge, I’m charging,” he reiterated this week, emphasizing that India’s tariffs—sometimes as high as 70% on U.S. goods like cars—make it “pretty much impossible” for American companies to compete. He cited the example of Harley-Davidson motorcycles, a recurring theme from his first term, noting that India’s 100% tariff (now reduced to 30% for high-end bikes) had historically stifled U.S. exports.
India, which enjoys a trade surplus with the U.S.—its largest trading partner—has responded cautiously. Bilateral trade crossed $190 billion in 2023, with U.S. exports to India at $70 billion and Indian exports to the U.S. surging to $123 billion. In a bid to preempt Trump’s tariff threats, India slashed its peak tariffs from 150% to 70% in its February 2025 budget and reduced duties on key U.S. exports like almonds, apples, and motorcycles. During Modi’s February visit, both leaders agreed to negotiate a trade deal by autumn 2025, with India committing to buy more U.S. oil, gas, and military hardware, including F-35 fighter jets.
However, Trump’s latest statement suggests he remains unsatisfied. “India has some of the highest tariffs in the world,” he said, echoing his first-term moniker for India as the “tariff king.” He argued that the U.S., with an average tariff rate of 2.2% compared to India’s 10.6%, has been “ripped off for decades” by such disparities. Posts on X reflect a mix of sentiments, with some users applauding Trump’s hardline stance while others warn of a potential trade war’s impact on India’s slowing economy, projected to grow at 6.4% this year—its weakest in four years.
Indian officials have pushed back, highlighting that 75% of U.S. exports to India face tariffs below 5%, and that recent reductions signal a shift toward freer trade. “We are not a high-tariff country,” said Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes and Customs, in a recent interview. Yet, Trump’s rhetoric, coupled with his March 4 address to Congress announcing reciprocal tariffs effective April 2, suggests that India may not escape the crosshairs of his trade policy.
The stakes are high. Economists warn that a full-blown tariff war could hit India’s $7-8 billion in exports to the U.S., particularly in textiles, pharmaceuticals, and engineering goods, while raising costs for American consumers. On the flip side, India’s strategic alignment with the U.S. against China and Modi’s personal rapport with Trump—whom he called “the nicest human being” last year—could soften the blow. For now, as Trump’s team finalizes its tariff calculations, India braces for a tense few weeks ahead, with Commerce Minister Piyush Goyal in Washington this month to negotiate a way forward.