India has offered to cut its tariffs on US goods to zero, Donald Trump claims, 'but it's getting late'

Trump's claim comes days after US treasury secy flagged slow pace of trade deal talks as another reason for tariff tiff, besides India's Russion oil purchase

US President Donald Trump on Monday called the India-US trade equation a “one sided disaster”, and claimed that India has offered to cut its import taxes on American goods to “nothing”.

Traders at a protest against the recent tariffs imposed by US President Donald Trump on Indian goods, in New Delhi. (HT File)

But, he said, it was “getting late” for that now.

He pointed towards India's trade with Russia, again, in his latest tirade after his administration imposed a massive 50% tariff rate on India.

His apparent reference to the stalled talks between the two sides for a trade deal — and India's alleged offer to cut duties — did not yield a response from the Modi government immediately.

Trump's claim comes barely a week after the American treasury secretary, Scott Bessent, flagged the slow pace of the trade deal talks despite an early start in April. Bessent listed this, along with India's oil purchase from Russia, among reasons for the tariffs as “penalty”.

PM Narendra Modi's government has consistently been questioning the US logic and pushing back on certain red lines in the trade talks, such as protecting India's farmers from an influx of US produce.

US officials, meanwhile, seek to pressure and pummel India with numbers and jibes, including one by Trump's top aide Peter Navarro: that “Brahmin” oil refiners were “profiteering” by reselling Russian oil.

Modi has, meanwhile, made eastward trips to Japan and China, and underlined the decades-long ties with Russia, in a possible realignment of global trade forces.

Trump cites trade gap, and Russia again

Hours after Modi landed back from China thus, Donald Trump said in his post 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… The reason is that India has charged us, until now, such high tariffs… that our businesses are unable to sell into India. It has been a totally one sided disaster!”

In 2024, India imported US goods worth $41.5 billion, while it exported worth $87.3 billion to the US. This meant a trade surplus of $45.8 billion in India's favour, as per data shared the US Trade Representative.

In the first six months of 2025, Indian exports to the US were at $56.3 billon, while it imported good worth $22.1 billion.

Trump noted that India buys “most of its oil and military products from Russia, very little from the US”, referring again to a factor (particularly crude oil) that he originally cited for the 25% “penalty” part of the total 50% tariffs imposed on most Indian products.

He claimed in his post: “They (India) have now offered to cut their tariffs to nothing, but it’s getting late. They should have done so years ago,” and said he was offering “some simple facts for people to ponder”.

Why is Trump so angry, and what's the effect?

Trump is apparently incensed by this trade gap, as he claims US goods are taxed too heavily by India.

He may actually be upset also because India has not agreed with his claim that he “made it stop” its Operation Sindoor military action against Pakistan in May, reports have said.

Amid many reasons, stated and speculated, the US tariffs on Indian goods hit 50% near the end of last month, three weeks after 25% kicked in.

These tariffs affect, in particular, labour-intensive sectors such as textiles, gems and jewellery, footwear and leather goods, besides shrimp and other products. Some sectors like pharmaceuticals and electronics have largely been exempted, for now.

Forecasts suggest Indian exports to the US may decline dramatically —from around $87 billion in 2024 to about $50 billion by 2026 — with a potential GDP impact of about 1% and significant job losses.