Trump says India offers tariff cuts after U.S. doubles duties over Russian oil

Investing.com -- President Donald Trump said India has offered to eliminate tariffs on U.S. goods following Washington’s decision last week to impose steep new levies on Indian exports. The announcement highlights the deepening strain between the two countries over trade imbalances and New Delhi’s longstanding energy and defense ties with Russia.

“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us,” Trump posted on his social media platform Truth. “In other words, they sell us massive amounts of goods, their biggest ‘client,’ but we sell them very little.”

The new tariffs by the U.S. doubled existing rates from 25% to 50% on a wide range of Indian exports, covering more than 55% of shipments headed to America. Labor-intensive sectors, such as textiles and jewelry, are expected to take the brunt of the impact.

Electronics and pharmaceuticals, however, were spared from the new levies, safeguarding recent investments like Apple Inc.’s large-scale iPhone assembly operations in India. The exemptions also signal Washington’s intention to protect strategic supply chains while still pressuring New Delhi on geopolitical grounds.

Trump has grown increasingly critical of India’s oil imports from Russia, framing them as a crucial funding source for Vladimir Putin’s war efforts in Ukraine. “Also, India buys most of its oil and military products from Russia, very little from the U.S.,” he said.

India’s tentative agreement to lift tariffs altogether represents a significant shift in its traditionally protectionist trade policies. Trump welcomed the offer but warned it may have come too late, stating: “They have now offered to cut their Tariffs to nothing, but it’s getting late.”

Washington has been urging allies to reduce reliance on Russian energy and defense industries in response to Moscow’s invasion of Ukraine years ago. India, which has refrained from joining Western sanctions, continues to walk a diplomatic tightrope as it deepens ties with both Russia and the West.

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