India Has Offered To Reduce Tariffs On US Goods To Zero: Trump After PM Modi Visits China

President Trump expresses dissatisfaction with India's trade practices, labelling them one-sided. Ongoing tensions and unresolved issues hamper negotiations.

US President Donald Trump on Monday expressed dissatisfaction with India's trade practices, labelling the relationship as "totally one-sided." His comments come on the day when Prime Minister Narendra Modi had a meeting with Russian President Vladimir Putin and China's President Xi Jinping at the Shanghai Cooperation Organisation (SCO) gathering in Tianjin.

Trade discussions between India and the US hit a roadblock in August when a planned visit by an American delegation was unexpectedly cancelled. This setback occurred amid escalating tensions, with Trump imposing a 50% tariff on Indian goods and criticising India's energy deals with Russia. The negotiations had seen five rounds from March to July, but key issues remained unresolved.

India-US Trade Dynamics

Trump's criticism of India is not new, as he has consistently highlighted the imbalance in trade relations. He stated on Truth Social, "What few people understand is that we do very little business with India, but they do a tremendous amount of business with us." He emphasised that this has been a long-standing issue for decades.

The US President also mentioned that India had offered to reduce tariffs to zero but remarked that it might be too late. He compared the situation to Indonesia's deal with the US, where Indonesia faced a 19% tariff while US exporters enjoyed zero tariffs. Such an agreement is politically sensitive for India.

Core Issues in Negotiations

The stalled trade talks have been primarily due to disagreements over agricultural market access, tariff reciprocity, and ongoing World Trade Organization (WTO) disputes. Despite technical teams finalising most of the framework by late June, these core issues have kept negotiations at an impasse.

Adding to the strain are public criticisms from senior US officials like White House deputy chief of staff Stephen Miller and Treasury Secretary Scott Bessent. They have voiced concerns over India's continued oil purchases from Russia, which contradicts US interests.

Impact on Bilateral Relations

The friction extends beyond trade, as Trump's displeasure also stems from India's stance on other geopolitical matters. Reports suggest that Trump's irritation includes India's refusal to credit him for facilitating a ceasefire with Pakistan in May. These factors have reportedly strained bilateral ties further.

In light of these tensions, Trump has reportedly decided against attending the Quad leaders' summit in India later this year. This decision underscores the current challenges in India-US relations and highlights the need for diplomatic efforts to bridge differences.

The evolving dynamics between India and the United States reflect broader geopolitical shifts. As both nations navigate these complexities, their ability to find common ground will be crucial for future cooperation and mutual benefit.