WASHINGTON / NEW DELHI, 1 September 2025 – U.S. President Donald Trump renewed his criticism of India’s trade policies on Monday, branding the bilateral relationship “a one-sided disaster.” He claimed, without confirmation, that India has offered to reduce tariffs on U.S. goods to zero—yet, according to Trump, “it’s getting late” for such a move.
In a post on Truth Social, Trump lamented that “We do very little business with India, but they do a tremendous amount of business with us,” labeling his relationship with New Delhi as long-imbalanced. He added that while the current offer to eliminate tariffs may appear conciliatory, it fails to redress years of inequities.
His remarks coincided with Indian Prime Minister Narendra Modi’s attendance at the Shanghai Cooperation Organisation summit in Tianjin, where India is forging deeper ties with China and Russia—further underscoring the diplomatic complexity of the moment.
Context & Regional Implications
India’s decision to lower tariffs remains unconfirmed, and Indian authorities have yet to issue an official response. However, Trump’s claims come as the U.S. applies steep tariffs—up to 50%—on Indian exports in retaliation for New Delhi’s continued purchase of Russian oil, a move that has raised tensions between the two long-time partners.
For Southeast Asia, the escalating trade tensions between Washington and New Delhi pose strategic consequences. ASEAN economies that rely on a stable US–India axis—be it through trade, multi-sector cooperation, or geopolitical balance—may find themselves navigating a more fragmented order. India’s closer entanglements with China and Russia may open alternative diplomatic and economic pathways for the region, but could also strain existing trade frameworks anchored in Western-led alliances.
