Between a tariff and a hard place: How India can find the sweet trade spot in Trump era
Trump’s actions – namely that they are well thought of and have specific objectives in mind. So too could be his threat to impose reciprocal tariffs on countries, including India, on a selective basis.
Trump-Modi Meet
The mega MIGA, MAGA plans of India's Modi and US' Trump
Trump says India has more tariffs than others
Trump's 'golden rule' for imposing reciprocal tariffs
Current Bilateral Trade Landscape
The United States and India share a long history of economic engagement, with trade and investment serving as a critical cornerstone of their bilateral relationship. In 2024, the total trade in goods between the two countries was around USD 130 billion, making India one of America’s top ten trading partners (US Trade Bureau).
The main goods traded between the two countries inter alia include pharmaceuticals, machinery and equipment, mineral fuels, textiles & apparel, and agricultural products. If you look at the average tariffs applied on these products (there could be significant variations on some individual HS lines), it is only on agricultural products that India levies a much higher duty than what the US does. Interestingly, on textiles and apparels, while on an average India may be levying higher duties than what the US does, the US imposes substantially high tariffs on certain textile lines.
However, U.S. Administrations have been voicing concerns over high tariffs on select goods which, according to US officials, harm the US. It is these perceived “unfair” tariff disparities that seems to have prompted
