Tough India-US Trade Talks Amidst Irritants

Throughout last week, President Trump of the United States repeatedly irritated India with one upsetting statement or another. India tried to pinprick the US with a proposal to impose retaliatory tariffs. Both governments should now settle down to some serious trade talks during the visit of our Commerce Minister to the US this week.

- T.N. CRAJAGOPALAN

Trump claimed that he threatened the use of trade as a tool to coerce India and Pakistan to cease hostilities. He asked the chief of Apple, the leading phone-making company, not to make its phones in India but in the US. He said that India has agreed to zero duties on the import of most products from the US. India promptly rejected his claims.

Last Monday, India notified the World Trade Organization (WTO) of its proposal to impose retaliatory tariffs against the raising of tariffs on imports of steel and aluminum products by the US from March 12, 2025. India's communication followed a similar notice from the United Kingdom on May 9, 2025, proposing retaliation under the WTO agreement on safeguards (AoS). Japan followed India with a similar notification. It is difficult to understand the purpose of these proposals, as all these countries are negotiating trade deals with the US.