Trump is WRONG on India trade, and hiding the truth that it's 10th in the list of countries the US is in deficit with: 'Why this whining?'

President Donald Trump has claimed that US trade with India is "almost nil", painting a bleak picture of the trade deficit with India as evidence of an unfair imbalance. However, as repeatedly shown by data from official US sources, this claim is misleading and ignores the broader reality of America’s trade gaps with other countries. The US runs significant trade deficits with many nations, and India ranks only around tenth on that list—nowhere near the top five.

What exactly did Trump say about India trade?

In a Truth Social post on Monday (Sep 1), Trump claimed: “Our Trade Deficit with India is massive, and yet India does practically NOTHING for us. Our trade relationship is almost NIL — they sell to us, we get nothing. America is being ripped off. We will bring jobs and manufacturing back home where it belongs!”

This is nothing new: India-bashing over trade has been a Trump passtime for months now. Yet, it is time to call out the half-truths.

The US trade reality: A whopping trillion-dollar deficit

According to 2024 data, the US recorded a record 1.2 trillion dollar goods trade deficit. This staggering figure reflects the country’s deep reliance on foreign supply chains—especially in electronics, automobiles, pharmaceuticals, and energy. But India is not one of the main contributors to this imbalance.

China leads the pack, with many 'friendly' countries also contributing to the US trade deficit

In 2024, the US trade deficit with China was 295 billion dollars, significantly down from its peak of 418 billion dollars in 2018. Despite geopolitical rivalries, the US imported nearly 500 billion dollars worth of goods from China in 2024, primarily electronics, furniture, and industrial equipment. In fact, nearly 70 per cent of all smartphones and laptops sold in the US were manufactured in China.

Mexico, America’s largest overall trade partner, came second, with a 172 billion dollar deficit. US imports from Mexico reached 470 billion dollars, including cars, trucks, computers, appliances, food, and beer. Most of this trade flows duty-free under the USMCA agreement.

Who are the top 10 countries contributing to the US trade deficit?

The top countries include both allies and competitors. Vietnam ranks third (124 billion dollar deficit), followed by Ireland (87 billion dollars) and Germany (85 billion dollars). Further down the list are Taiwan (74 billion), Japan (69 billion), South Korea (66 billion), and Canada (63 billion).

India ranks 10th in trade deficit with the US

In 2024, the US trade deficit with India stood at 46 billion dollars. The US exported 41.8 billion dollars to India while importing 87.4 billion dollars. While Trump has criticised this imbalance, both countries had previously agreed to increase bilateral trade to 500 billion dollars by 2030.

Notably, US–India trade in services was approximately 83.4 billion dollars in 2024, helping to offset the goods deficit. Additionally, defence trade between the two nations has grown significantly—from virtually nil in 2000 to nearly 22 billion dollars in 2024.

The US runs trade deficits with over 100 countries—so why target India?

Official data shows the US had goods trade deficits with more than 100 countries in 2024. The combined deficit with just five Asian countries—China, Japan, South Korea, Taiwan, and Vietnam (excluding India)—surpassed 620 billion dollars. Clearly, India is far from being a leading contributor to the US trade deficit.

‘Why this whining?’: Former Indian diplomat calls out Trump’s selective memory

Responding to Trump’s post, former Indian diplomat Kanwal Sibal criticised the portrayal of India as a major trade offender. He described the claim as being "economical with truth and trading in falsities".

Sibal pointed out that US trade deficits with China (270 billion dollars), the European Union (161 billion), Mexico (157 billion), and Vietnam (113 billion) were all significantly higher than with India (41.5 billion). He also highlighted strong growth in services and defence trade, directly contradicting Trump’s suggestion of negligible engagement.

"Why this whining? The claim that we have offered to reduce our tariffs to nothing is true of some products, but our red lines are firm," Sibal added.