US President Trump Rules Out Lifting Tariffs, Calls India's Trade Practices "One-Sided"

3 September, 2025

US President Donald Trump has stated he will not roll back the 50% tariffs on Indian goods, describing the bilateral trade relationship as historically "one-sided". Citing high Indian tariffs on American products like Harley-Davidson motorcycles, Trump claimed India "kills us with tariffs" and dismissed a reported Indian offer of a "no tariffs" deal as "too late." The comments signal continued trade friction between the two strategic partners despite ongoing negotiations for a new trade agreement.

Unpacked:

What led to the imposition of 50% US tariffs on Indian goods?

The tariffs stem from longstanding US complaints about India’s high import duties on American products, especially motorcycles. Tensions escalated after India continued purchasing Russian oil, leading President Trump to double tariffs to 50% as a penalty after several failed negotiation rounds.

How has India responded to these increased US tariffs?

Indian officials, including Foreign Minister S. Jaishankar, have condemned the tariffs as 'unfair, unjustified, and unreasonable.' Prime Minister Modi declared that India would not compromise and was prepared to bear the economic consequences, signaling a strong pushback against US actions.

What economic impacts could these tariffs have on US-India relations?

The tariffs have strained bilateral ties, with trade talks stalling and experts calling this one of the lowest points in US-India relations in decades. Both economies could face reduced trade flows, higher consumer costs, and potential disruptions in sectors like manufacturing and technology.

What recent history is relevant to understanding this dispute?

Since 2018, the US has criticized India's tariffs, especially on Harley-Davidson motorcycles. After ending India’s GSP benefits and a brief period of close ties, disputes over tariffs and India’s Russian oil imports reignited tensions, culminating in sharply increased tariffs in 2025.