Far-right activist Laura Loomer has claimed that US President Donald Trump is considering blocking American companies from outsourcing IT and customer support work to Indian firms. In a post on X, Loomer suggested that the move would end reliance on Indian call centres, adding: “You don’t need to press 2 for English anymore. Make Call Centers American Again!”
Tariff Push on Outsourcing
Her remarks follow calls from conservative activist Jack Posobiec, who proposed tariffs on all “foreign remote workers” and outsourcing. He argued that countries should pay for the privilege of providing services to US companies, similar to tariffs on imported goods. White House trade adviser Peter Navarro amplified Posobiec’s post, writing: “It’s tariff time. Outsourcing to countries like India contributes to wage and employment suppression for American workers.”
Impact on India’s IT Sector
If implemented, such measures could hit India’s $250+ billion IT industry, which is heavily dependent on contracts from US corporations for software development, support, and backend services. Analysts warn this could lead to job losses in India while driving up operational costs for US businesses that rely on Indian IT outsourcing for efficiency and cost savings.
India’s IT giants such as TCS, Infosys, Wipro, and HCLTech earn a large portion of their revenues from the US market, meaning even partial restrictions could significantly affect their margins and growth.
Diplomatic Balancing Act
The outsourcing debate comes against the backdrop of Trump’s broader tariff actions, which have already imposed steep duties—up to 50%—on imports from India and Brazil. Yet, both sides continue to highlight the strength of the bilateral partnership.
Prime Minister Narendra Modi, reacting to Trump’s comments on US-India ties, wrote on X: “Deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties. India and the US have a very positive and forward-looking Comprehensive and Global Strategic Partnership.”
Trump, while voicing concerns about India’s oil imports from Russia, stressed his friendship with Modi, calling him a “great prime minister,” and downplayed tensions as occasional disagreements between allies.
