2 Sep 2025 : U.S. President Donald Trump has once again accused India of “unfairness” in trade. He said that India has engaged in “one-sided trade” with the U.S. and imposed heavy tariffs (import duties) on American products. But is that the complete truth? Let’s find out in detail…
Trump’s Claim vs Reality: Is India the Biggest Culprit?
Donald Trump has repeatedly alleged that India has taken undue advantage in trade with the U.S. and has significantly contributed to America’s trade deficit. But the actual data tells a very different story:
Country – U.S. Trade Deficit (in Billion Dollars)
- China: $270 Billion
- European Union: $161 Billion
- Mexico: $157 Billion
- Vietnam: $113.1 Billion
- Taiwan: $67.4 Billion
- Japan: $62.6 Billion
- South Korea: $60.2 Billion
- Canada: $54.8 Billion
- Thailand: $41.5 Billion
- India: $41.5 Billion
India hasn’t “looted,” it has benefited the U.S.
Trump tries to portray India as America’s biggest “freeloader.” But the truth is, America’s largest trade deficit (as of 2024) is with China ($270B), followed by the EU ($161B), Mexico ($157B), Vietnam ($113B)… and India? Just $41.5B. That means India contributes only about 3% to America’s overall trade deficit. If this is “looting,” then why isn’t Trump equally aggressive against China and Europe?
Trade in Services – A Balanced Exchange
In 2023, trade in services between India and the U.S. stood at around $83.4 billion.
- U.S. exports of services to India: $41.8B
- India’s exports of services to the U.S.: $41.6B
So the balance is almost equal. How can Trump’s claim of “one-sided” trade be correct here?
Is India the biggest culprit? Absolutely not.
Countries like China, the EU, Mexico, and Vietnam account for a far larger share of the U.S. trade deficit. So why all the fuss about India?
Defense Trade: India-U.S. Relations Have Grown
In 2000, India-U.S. defense trade was almost zero. By 2024, it has risen to $22 billion. Can this also be called a “one-sided loss”?
India Reduced Tariffs, But Won’t Allow Dumping
India has reduced tariffs in many sectors—especially technology, medical equipment, and defense. But India has the right to protect its farmers, small industries, and local economy—just as the U.S. does. Trump talks about “Buy American” and “America First,” so why should it be a problem if India prioritizes its own local interests?
The Issue of Buying Oil and Weapons from Russia
Trump also said that India buys more oil and weapons from Russia. But this is part of India’s long-standing strategic policy, decades old. At the same time, India has also started buying weapons from the U.S.—a fact Trump seems to forget.
Defense Purchases from Russia – A Historical Context
Trump complains that India buys defense equipment and oil from Russia. But has this started recently? The answer is no. India has been doing defense deals with Russia for decades. During Trump’s own tenure, India bought weapons from the U.S. as well.
- In 2000, India-U.S. defense trade was nearly zero.
- By 2024, the figure crossed $22B.
So even when Trump was President, India was buying American weapons. Now he calls India guilty?
If the Relationship Was So Harmful, Why Didn’t Trump End It?
Trump was President from 2017 to 2021. If trade with India was a “one-sided disaster,” why didn’t he end it then? The truth is, his own administration was strengthening trade and defense ties with India. Trump visited India, attended the “Namaste Trump” event, praised Modi, signed deals—and now he’s criticizing the same India?
Summary :
Donald Trump’s statement accusing India of looting the US has been debunked by official trade data. Figures reveal no evidence supporting his claim, exposing the rhetoric as misleading.