A ‘Very Good Relationship’ with India—But at What Cost?
Former U.S. President Donald Trump has once again turned the spotlight on India’s trade policies, calling the country one of the highest tariffing nations in the world. While acknowledging his “very good relationship” with India, Trump didn’t hold back on his criticism, warning that reciprocal tariffs on Indian goods could kick in as soon as April 2.
Speaking to Breitbart News, Trump highlighted his concerns over India’s trade barriers, hinting at possible escalations if no agreement is reached. With trade negotiations still in progress, all eyes are now on whether the two nations can bridge their differences before the deadline.
The Tariff Tussle: A History of Discontent
Trump’s grievances with India’s tariff policies are nothing new. In the past, he has labeled India as a “tariff king” and a “big abuser”, citing the high import duties imposed on American goods.
Even during Prime Minister Narendra Modi’s recent visit to the U.S., Trump publicly stated that India has been “very strong on tariffs”, making it difficult for American businesses to penetrate the Indian market. “I don’t blame them necessarily,” he said, “but it’s a different way of doing business.”
With April 2 fast approaching, Trump has doubled down on his stance—either India lowers its tariffs substantially, or the U.S. will hit back with its own duties.
The India-Middle East-Europe Economic Corridor (IMEC) & Strategic Alliances
Despite the looming trade tensions, Trump acknowledged India’s role in the India-Middle East-Europe Economic Corridor (IMEC), calling it a “powerful group of partners” banding together to counter trade threats from other nations.
However, he also hinted at a double standard in global trade, stating that some U.S. allies treat America worse than its rivals. “In many ways, we do better with our foes than we do with our friends,” he noted, placing India, the European Union, and other allies under scrutiny for their trade practices.
Is a Trade Deal on the Horizon?
Despite Trump’s fiery rhetoric, both nations have been working behind the scenes to strengthen trade ties. During PM Modi’s recent U.S. visit, India and the U.S. announced plans to negotiate a Bilateral Trade Agreement (BTA) aimed at reducing tariffs and non-tariff barriers across multiple sectors.
Commerce Secretary Sunil Barthwal confirmed that talks are still ongoing, but no concrete agreement has been reached yet. With time running out, will the two nations strike a deal before the April 2 deadline, or are we heading toward a major trade confrontation?
What’s Next?
For now, the ball is in India’s court. While Trump has made his stance clear, the Indian government must decide whether to adjust its trade policies or risk facing American counter-tariffs.
With global trade alliances shifting, one thing is certain—India-U.S. trade relations are at a critical juncture. Whether this turns into a win-win negotiation or a heated tariff war, only time will tell.
