- Trump known as India-US commerce a “one-sided catastrophe,” citing a $46B commerce hole and India’s oil ties with Russia.
- US tariffs on Indian items have doubled to 50%, hitting key sectors like textiles, gems, footwear, and seafood.
- Forecasts counsel India’s exports to the US might plunge to $50B by 2026, reducing 1% from GDP and costing jobs.
The commerce battle between the US and India simply received hotter. On Monday, President Donald Trump blasted the India-US commerce equation, calling it a “one-sided catastrophe.” He went additional, claiming India had supplied to slash tariffs on American imports right down to “nothing” — however, in his phrases, “it’s getting late” for that sort of deal now.
TRUMP: INDIA HAS OFFERED TO CUT THEIR TARIFFS ON THE U.S. TO NOTHING — SHOULD HAVE DONE SO YEARS AGO pic.twitter.com/7OH2iwQPPD
— BlockNews (@blocknewsdotcom) September 1, 2025
TRUMP: INDIA HAS OFFERED TO CUT THEIR TARIFFS ON THE U.S. TO NOTHING — SHOULD HAVE DONE SO YEARS AGO Trump’s frustration wasn’t simply in regards to the hole in commerce. As soon as once more, he pointed towards India’s ties with Russia, particularly its oil purchases, framing them as an oblique means of serving to Moscow fund the conflict in Ukraine. His administration already slapped a 25% penalty tariff earlier within the month, and now it’s doubled down with a steep 50% price on most Indian items.
US Pushback, India Pushback
The feedback come amid stalled commerce talks. Treasury Secretary Scott Bessent just lately flagged the sluggish progress, whereas Trump’s high aides have hurled sharp criticism — even accusing Indian refiners of “profiteering” on low-cost Russian oil. For its half, India has pushed again, defending its place and defending delicate sectors like agriculture from what it sees as unfair US stress.
Indian Prime Minister Narendra Modi, in the meantime, has been strengthening ties in Asia, making journeys to Japan, China, and reaffirming the decades-long bond with Russia. It’s a not-so-subtle signal of how international alliances are shifting at a time of commerce turbulence.
The Commerce Hole and the Tariff Fallout
Trump’s argument is straightforward: India sells much more to the US than it buys. In 2024, India exported $87.3 billion to America, whereas importing simply $41.5 billion — a surplus of practically $46 billion. For the primary half of 2025, exports have already topped $56 billion, whereas imports sat at simply $22 billion.
These numbers, Trump insists, present why US companies can’t compete in India. However past the rhetoric, the tariffs are already beginning to sting. Labour-heavy industries like textiles, gems and jewelry, footwear, and seafood are most uncovered. Prescription drugs and electronics have been spared, a minimum of for now.
What Might Occur Subsequent?
Economists warn that the tariffs might trigger Indian exports to the US to tumble from $87 billion in 2024 to nearer to $50 billion by 2026. That drop might shave round 1% off India’s GDP and hit jobs laborious in export-heavy sectors.
Trump, nevertheless, appears decided to maintain stress on. “They need to have carried out so years in the past,” he posted, referencing India’s alleged supply to chop tariffs. For now, the commerce drama seems to be removed from over, and each side seem able to dig in for an extended combat.
The publish Trump Claims India is Slashing Tariffs Towards the U.S. and Right here is Why first appeared on BlockNews.