Trump Accuses India of ‘Killing’ US Economy with Tariffs as Washington Slaps 50% Duties on Indian Imports

By-andrew rose

Washington, DC – September 10, 2025

In a sharp escalation of trade tensions, the United States has imposed a 50% tariff on a wide range of Indian goods, effective immediately, amid accusations from former President Donald Trump that India has “killed” American industries with its own protectionist policies. The move, announced by the White House on Tuesday, targets sectors including textiles, pharmaceuticals, and automotive parts, potentially affecting billions in bilateral trade.

Trump, speaking at a rally in Michigan, lambasted India’s trade practices, claiming: “India killed the U.S. with tariffs, now offers ‘no tariffs’ – but it’s too late. They’ve been ripping us off for years.” His remarks come as reports suggest New Delhi has proposed eliminating certain tariffs in ongoing negotiations, a gesture dismissed by Trump allies as insufficient. The former president, who remains a influential figure in Republican circles despite not holding office, has long advocated for aggressive trade measures against what he calls “unfair” partners.

The tariffs follow months of strained relations, exacerbated by disputes over intellectual property, agricultural subsidies, and market access. US Trade Representative Katherine Tai described the action as a “necessary response to India’s non-reciprocal trade barriers,” citing data from the Office of the US Trade Representative showing India’s average applied tariff rate at around 13%, significantly higher than the US’s 2.5%. Indian exports to the US, valued at over $80 billion annually, could face immediate disruptions, with economists warning of retaliatory measures from New Delhi.

Indian officials have reacted strongly, with the Ministry of Commerce and Industry calling the tariffs “unilateral and unjustified.” In a statement, Commerce Minister Piyush Goyal said: “This is a setback to the spirit of cooperation between two democracies. India has been open to dialogue, including offers to reduce tariffs on select US products.” Sources in Delhi indicate that India may challenge the move at the World Trade Organization (WTO), arguing it violates global trade rules.

The backdrop includes broader geopolitical shifts. India’s opposition Congress party accused China of “leveraging the Indo-US rift to pressure India,” suggesting Beijing is exploiting the discord to strengthen its economic foothold in South Asia. Analysts point to China’s growing investments in India amid US-India tensions, which have also been fueled by differences over Russia’s war in Ukraine and technology transfers.

Experts warn of ripple effects. Dr. Arvind Panagariya, a Columbia University economist and former Indian government advisor, told America News World: “This could inflate prices for American consumers, especially in generics drugs where India dominates. It’s a double-edged sword – protecting US jobs but risking supply chain disruptions.” The pharmaceutical sector alone accounts for 40% of US generic drug imports from India.

The tariffs coincide with other global flashpoints. In Nepal, Gen Z-led protests against a social media ban have turned deadly, with at least 19 killed, drawing US condemnation and highlighting regional instability. Meanwhile, India’s cabinet approved a bid for the 2030 Commonwealth Games, signaling ambitions on the world stage despite economic pressures.

Business leaders on both sides urge de-escalation. The US-India Business Council called for “urgent talks to prevent a full-blown trade war.” As markets react – with Indian stocks dipping 2% in early trading – the coming weeks will test the resilience of the Indo-US strategic partnership, once hailed as a counterweight to China.

This development underscores the fragility of global trade in an era of populism and protectionism. With midterm elections looming, the White House may face domestic pushback from industries reliant on Indian imports.