US–India Trade 2025: Is India Really Fleecing the US? The Data Says No

Trump’s Tariff Gambit: How Washington Risks Alienating India in 2025

The world has seen many roller coasters. But none is as dizzying as the ride President Donald Trump insists on giving us in his second coming. In his quest to win a Nobel Prize for Peace—yes, the man genuinely believes that juggling seven simultaneous peace deals, from Israel–Iran to India–Pakistan, Azerbaijan–Armenia, and even a desperate mediation attempt between Russia and Ukraine, qualifies him as a modern-day Gandhi—Trump has instead managed to achieve the opposite. He has rattled alliances, weakened America’s credibility, and in the process, pushed India closer to the very powers Washington most fears: China and Russia.

Along the way, he has frayed the QUAD’s unity, isolated one of America’s most reliable partners, and left ordinary Americans with higher prices and fewer friends. Quite an accomplishment for a man who promised to Make America Great Again.

The Gospel of MAGA and Its Fine Print

One must understand that “Brahmin” is not a slang term in India. Though it denotes a higher caste, its actual meaning is “one who is wise and knowledgeable.” So, when White House trade adviser Peter Navarro accused “Brahmins profiteering at the expense of the Indian people” during a Fox News tirade on September 1, 2025, it wasn’t just trade policy—it was a cultural caricature weaponized to justify punitive tariffs. The irony? The real “Brahmins” of MAGA are America’s white elite, busy protecting their jobs while outsourcing the costs to everyone who isn’t pale enough to make the cut.

So when Trump returned to power, no one was surprised that he dusted off his “America First” doctrine. True to form, he slapped a headline-grabbing 25% tariff on select Indian goods—including textiles and electronics—and, in a geopolitical twist, added another 25% penalty on imports linked to India’s continued Russian oil purchases. Effectively, this meant a 50% tariff burden on Indian exports to the US. His podium line was simple: India is fleecing America in a “one-sided disaster.”

But here’s the inconvenient truth: the numbers don’t back him up.

The Reality Check: A Balanced Trade Ledger

In FY 2024–25, India–US trade surged to $191 billion. Not imbalance—equilibrium.

India’s goods surplus of $41 billion sounds large until you notice what America takes home: nearly $42 billion in services, $13 billion from Indian students (education remains America’s most underrated export), $20 billion from intellectual property royalties, and a whopping $81 billion from corporate operations in India. Add in defense deals, remittances, and other flows, and the ledger reads: India nets $196 billion, America $199 billion.

That’s not a “disaster.” It’s a spreadsheet of mutual profit—and it’s only growing.

Tianjin’s SCO Summit: A Diplomatic Backhand

Then came the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, where Prime Minister Narendra Modi shared the table with Xi Jinping and Vladimir Putin. The optics were unmistakable: Asia signaling it can close ranks when Washington acts the unilateral bully.

Ed Price, a senior Non-Resident Fellow at NYU and former UK trade official, spelled out the danger in a post-summit interview:

“If the Chinese, the Russians and the Indians get together in any form of alliance that is economic and around the edges military, there’s no way that the Americans can compete in the 21st Century. We might as well go home.”

And who is making that alliance look tempting? Not Xi. Not Putin. Trump’s tariff tantrum.

Beyond Trade: America’s Dependence on India

Here’s the irony MAGA never admits: India is not just a supplier of cheap generics. It is the backbone of America’s corporate ecosystem.

• Tech giants like Google, Microsoft, Amazon, and Meta have invested billions in India’s AI-ready digital infrastructure.
• Global Capability Centres (GCCs) in India generate over $65 billion in export value, mostly for US firms.
• Indian IT and pharma keep American hospitals, banks, and supply chains running.

Trump may think he’s punishing India. In reality, he’s punishing America’s own companies.

Education, Migration & Soft Power

The India–US bond goes beyond trade flows. Indian students inject $13 billion annually into the US economy. Indian-origin CEOs run some of America’s crown jewels, from Google to Microsoft. Meanwhile, $27 billion in remittances flow from the US to India each year—evidence of shared prosperity, not siphoning.

This isn’t weakness for America. It’s enrichment.

Why This Partnership Deserves Better

Trump’s tariff gambit may electrify his rallies, but it risks alienating a partner Washington can least afford to lose. India is not gaming the United States—it is building with it.

The SCO Summit proved one thing: India has options. And if Washington keeps shoving, New Delhi may explore them. That should make strategists in DC nervous.

In today’s multipolar world, the India–US relationship must be recast not as imbalance but as interdependence. Trust, parity, and shared vision must drive the partnership—not outdated talking points about who’s fleecing whom.

Because in this trade, neither side is losing. Both sides are winning. Together.

FAQs on US–India Trade and Trump’s Tariffs

Is India really “fleecing” America on trade?

No. The data shows India–US trade is balanced. While India has a $41B goods surplus, the US earns more from services, education, royalties, and corporate revenues.

How much was India–US trade in FY 2024–25?

Bilateral trade surged to $191 billion, with both nations benefiting almost equally.

What tariffs has Trump imposed on India?

Trump announced a 25% tariff on select Indian goods and another 25% penalty on imports linked to Russian oil, effectively doubling the pressure on Indian exports.

Why is America dependent on India?

US firms rely on India for IT, pharma, AI infrastructure, and Global Capability Centres that generate $65B in export value for American companies.

What role do Indian students play in the US economy?

Indian students contribute $13B annually, making education one of America’s biggest exports.

Could tariffs push India closer to China and Russia?

Yes. Trump’s tariff strategy risks driving India toward stronger ties with Beijing and Moscow, as seen in the recent SCO Summit.