The US President Donald Trump is projecting the US as the greatest victim of India in trade in his social media post after the SCO summit 2025, which went well attended! He is trying to write a good script for a drama about his reckless foreign and trade policies gimmicks. However, the following are facts about the US trade with India and the rest of the world:
As far as the US trade deficits with its trading partners are concerned, there are some interesting and unusual facts.
US-India trade (exports and imports) was $212 billion in 2024, and a trade deficit of $41.5 billion. The US deficit with China is $270 billion, which is 128% of the total trade between the US and India. The US trade deficit with India is nearly one-fifth of the US trade deficit with China.
With the EU, this deficit is $161 billion, about four times that of the deficit with India. With other countries like Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and Thailand, the US trade deficit is respectively $157 billion, $113.1 billion, $67.4 billion, $62.6 billion, $60.2 billion, 54.8 billion and $41.5 billion.
If we have a deeper view of the data, this usual false narrative of the victim comes to the fore.
India-US trade in services was about $83.4 billion, with U.S. services exports to India at $41.8 billion and U.S. imports from India at $41.6 billion. That simply means that there is no deficit on account of services for the US, rather a surplus of $200 million.
As far as the US trade deficits with its trading partners are concerned, there are some interesting and unusual facts.
US-India trade (exports and imports) was $212 billion in 2024, and a trade deficit of $41.5 billion. The US deficit with China is $270 billion, which is 128% of the total trade between the US and India. The US trade deficit with India is nearly one-fifth of the US trade deficit with China.
With the EU, this deficit is $161 billion, about four times that of the deficit with India. With other countries like Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and Thailand, the US trade deficit is respectively $157 billion, $113.1 billion, $67.4 billion, $62.6 billion, $60.2 billion, 54.8 billion and $41.5 billion.
If we have a deeper view of the data, this usual false narrative of the victim comes to the fore.
India-US trade in services was about $83.4 billion, with U.S. services exports to India at $41.8 billion and U.S. imports from India at $41.6 billion. That simply means that there is no deficit on account of services for the US, rather a surplus of $200 million.
Similar fake narratives have been offered by the US President Donald Trump on oil purchase and India financing the Russia-Ukraine war.
The largest buyer of Russian coal and crude oil is China. The largest buyer of Russian oil products is Turkiye. The largest buyer of Russian LNG and pipeline gas is the European Union. Not only this, but Russia pay huge money, about $800 million annually, to Ukraine for the safety of its gas pipelines also and Ukraine guards the gas pipeline with complete loyalty. No compromise on the safety of the pipeline!
India-US defence trade was virtually nil in 2000. It has touched a total of almost $22 billion in 2024. But there is another strategic fact that India knows well that the US is not a trusted weapon supplier for India. So India cannot create any defence dependence on the US. So in the defence sector trade, India was cautious and will remain in future too, and the responsibility lies on the shoulders of the US.
Why this whining?
Because, slowly, the Americans are paying higher prices for the goods as a result of Trump's reckless policies. It is making Trump domestically unpopular. To tame this increasing unpopularity, Trump needs a scapegoat which is safe or at least not as dangerous as China, for the US economy. India fits the bill, with the US not much depending on India for domestic daily supplies, the way it depends on Chinese goods.
Trump has been claiming that India is ready to reduce tariffs on US goods to zero is again misleading. India has indeed offered lower or zero tariffs on a few goods, but with strong redlines in some specified sectors.
India is not even in the top five nations buying fuel from Russia. The list is completely dominated by either the European Union or China! Still Trump Administration is calling India responsible for the Ukraine-Russia war! Why? Because India is pursuing its own foreign affairs more pragmatically and independently than following the orders coming from Uncle Sam! And with no doubt, India is guilty of this crime! Not only this, but India is now, according to Peter Navarro, sharing a bed with China and Russia!
Rajeev K Upadhyay
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