Trade tensions between India and the United States escalated over the weekend after White House Deputy Chief of Staff Stephen Miller accused India of trade protectionism and misusing immigration rules. In an interview on Fox News, Miller claimed that India was “cheating” on immigration policy and imposing “massive tariffs” on US products, despite calling itself a close US partner.
“India portrays itself as being one of our closest friends in the world,” Miller said. “But they don’t accept our products, they impose massive tariffs on us. We also know they engage in a lot of cheating on immigration policy.”
His comments came days after President Trump imposed 25% tariffs on a broad list of Indian-manufactured imports. The move is part of the administration’s wider push to address what it sees as long-standing trade imbalances. The US trade deficit with India rose to $45.7 billion in 2024, according to US government data.
H-1B program under renewed scrutiny
Miller’s remarks added immigration to the list of trade grievances. Though he did not explicitly name the H-1B visa program, his statements were widely interpreted as targeting the high-skilled visa track, which has been dominated by Indian professionals. Indians have consistently received about 70% of all H-1B visas issued annually.
Miller has previously pushed to curb the H-1B program, arguing it allows companies to displace American workers. During Trump’s earlier term, he helped implement restrictions that narrowed the definition of “specialty occupation” and increased visa scrutiny.
His recent language suggests the Trump administration may treat H-1B visas not as workforce tools but as trade leverage — tying future access to India’s willingness to lower tariffs or remove market barriers.
Bilateral trade and strategic risks
In 2024, bilateral trade between the two countries reached $129 billion. US exports to India were valued at $41.8 billion, a 3.4% increase from 2023. Imports from India grew by 4.5% to $87.4 billion. The new tariffs are expected to affect key Indian exports including textiles, electronics, and auto components.
On immigration, Miller’s use of the term “cheating” is being viewed as a shift from previous diplomatic messaging. Earlier in 2024, he had refrained from direct criticism of India, stating, “There is a great partnership, both at the government level and at the people-to-people level, and I fully expect that to continue.”
High-stakes recalibration
The latest exchange comes amid broader changes in US foreign policy under Trump’s second term, which prioritises bilateral deals and pushes an “America First” trade agenda. Analysts caution that politicising immigration and trade could erode long-term trust between the two countries.
Miller’s appointment last year had already raised concerns in India’s tech sector. He has long advocated for restricting both legal and illegal immigration. In the past, he proposed eliminating the H-1B lottery system and introducing longer wait times for international graduates seeking work in the U.S.
As both countries prepare for national elections — India in 2026 and the US in 2028 — diplomatic observers warn that domestic political pressures could increasingly shape cross-border policies. No high-level trade talks have been announced so far.
Source Name : Economic Times