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Home » Trump Aide’s Claim on Blocking Outsourcing to India Sparks Debate

Trump Aide’s Claim on Blocking Outsourcing to India Sparks Debate

Ananya Pattnaik by Ananya Pattnaik
September 7, 2025
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American right-wing activist Laura Loomer has claimed that US President Donald Trump is considering a ban on outsourcing of work to Indian IT companies, a move that could significantly impact the $250-billion Indian IT industry.


In a post on X (formerly Twitter), Loomer alleged:

“President Trump is now considering blocking US IT companies from outsourcing their work to Indian companies.”

She went on to link the issue to language and cultural stereotypes, writing:

“Make Call Centres American Again!”

Loomer argued that such a move would eliminate the need for Americans to “press 2 for English” when contacting customer service.

Trade Tensions in the Background

The claim comes amid renewed trade friction between Washington and New Delhi. While President Trump and Indian Prime Minister Narendra Modi have recently exchanged warm words, key disputes over tariffs, market access, and services trade remain unresolved.

Right-wing commentator Jack Posobiec (Jack Poso) added fuel to the debate by calling for tariffs on foreign remote work:

“Countries must pay for the privilege of providing services remotely to the US, the same way as goods. Apply across industries, levelled as necessary per country.”

According to reports, Trump’s trade advisor Peter Navarro — the architect of the administration’s protectionist policies — gave a “thumbs up” to the suggestion.

Impact on Indian IT Sector

If implemented, the move could affect Indian IT giants TCS, Infosys, Wipro, HCLTech, and Tech Mahindra, which together employ millions of engineers and deliver software, consulting, and back-office services to major US corporations.

India is the largest destination for outsourced IT work, accounting for nearly 60% of the global outsourcing market.

Loomer’s remarks have revived stereotypes about language barriers in Indian call centers. However, data shows high English proficiency in India.

  • Pew Research data: 84% of Indians aged 5+ speak English proficiently

  • 28% use only English at home

  • 56% speak another language but say they speak English “very well”

In contrast, US Census Bureau data shows:

  • 78% of Americans speak only English at home

  • 14% speak another language but report speaking English “very well”

What’s Next?

It is still unclear whether Trump is considering outright restrictions on outsourcing or a tariff-based approach that would make offshoring more expensive.
Industry analysts say any such measure could trigger retaliatory steps from India, further straining bilateral trade relations.

Tags: latest newsOutsourcing
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