Trump India Tariffs: Is a 0% Trade Offer Too Late to Fix US Imbalance?

When the world’s largest democracy and America’s oldest democracy clash on trade, headlines explode. On September 1, 2025, U.S. President Donald Trump used Truth Social to reject India’s surprising proposal to cut duties on US products to 0%. Instead of celebrating, he called it “too late.”

The Trump India Tariffs issue, first noted by The Kobeissi Letter on X , quickly triggered responses from diplomats, journalists, and analysts, turning an economic matter into a full-blown political storm.

Trump India Tariff News Update : Why 0% Offer Won’t Fix One-Sided Trade

The US president revealed that other country has offered to cut rates on U.S. goods to 0%. But instead of welcoming the move, he dismissed it as coming “too late.” He accused the diversified country of creating a “one-sided disaster” in trade, where they export freely to the United States but block American products with high import taxes.

Breaking Down Key Accusations

In a late X post, Trump criticized tariffs, he argued that the U.S. has faced an unfair deal for years. According to him:

• (Bharat) exports plenty of goods to the US, but America sends very little back.

• High taxes on imports have stopped United States firms from entering the Indian market.

• The trade relationship has been imbalanced for decades, hurting American companies.

• They still buy oil and military items from Russia, not from the U.S.

• Even though the Indian govt. has now offered to bring duties to zero, Trump called it “too late” and insisted this should have happened long ago.

By calling it a “one-sided disaster,” he positioned himself as the only leader who would stand strong against what he sees as unfair practices.

Fact-Check: KC Singh and Media Pushes Back on Donald’s Numbers

His remarks did not go unchallenged. K.C. Singh , a respected former Indian diplomat, pointed out several factual errors on X:

• In 2024, U.S. exports of services to us were $41.8 billion, almost equal to the country's $41.6 billion service exports to the United States.

• The real imbalance exists only in commodities trade, about $45 billion.

• This calculation ignores defense equipment already purchased by Bharat from America.

This response directly challenged the Trump India tariff narrative , showing that country's 0% tariff on US debate isn’t as simple as one side taking advantage.

Indian journalists also weighed in. A Senior Executive Editor at NDTV strongly criticized the US President, calling his words “desperate.”

Are India’s Tax Really Hurting the U.S.?

While he blames high charges for America’s weak exports, analysts say the reality is more complex. Jack Farley, a market commentator, explained:

• Sales from Bharat to the U.S. make up only 2.2% of Indus Land's GDP.

• This shows that a diversified country is not highly dependent on American trade.

• Countries like Vietnam and Mexico, in contrast, rely much more on U.S. demand, making them far more vulnerable.

In short, India trump tariff negotiation may affect some companies , but the Indian economy as a whole is not fragile to U.S. trade changes. By dismissing India’s 0% trade proposal, Donald wants to appear as the leader who was “right all along.”

Conclusion: Missed Opportunity or Pure Political Theater?

India 0% tariffs offer to US could have been seen as a historic breakthrough. Instead, Donald criticized it as a missed opportunity, claiming it should have happened years ago.

The reality is mixed. The United States and other diversified nation have strong service trade, but for now, the lesson for the Indian Government is clear: its economic independence means that taxes alone won’t shift the balance of power. For the American’s president, the Trump India Tariffs fight is a political card he can continue to play.