WASHINGTON: US President Donald Trump on Wednesday ruled out any immediate plans to remove the 50 per cent tariffs imposed on Indian goods. Reiterating his criticism of New Delhi’s trade practices, he described the US-India trade relationship as “one-sided” due to India’s high tariffs on American products.
Responding to a question on whether he was considering lifting some of the tariffs on Indian goods, Trump said, “No, we get along with India very well, but India has, you have to understand, for many years, it was a one-sided relationship.”
“India was charging us tremendous tariffs, about the highest in the world,” Trump stated.
“We weren’t doing much business with India, but they were doing tremendous business with us because we weren’t charging them foolishly.”
He gave example of Harley-Davidson as a case study, noting that India’s 200% tariff on imported motorcycles forced the US company to establish a manufacturing plant in India to bypass the duties.
“…I’ll give you an example, Harley Davidson. Harley Davidson couldn’t sell into India. There was a 200% tariff on a motorcycle. So, what happens? Harley Davidson went to India and built a motorcycle plant, and now they don’t have to pay tariff. Same thing as us,” Trump said.
“We weren’t charging them (India). So, they would send in massive, you know, everything they made that’d send it in, pour it into our country. Therefore, it wouldn’t be made here, you know. But we would not send in anything because they were charging us 100% tariffs.”
The remarks come amid heightened trade tensions, with the US imposing 50 per cent tariffs on Indian goods which would affect nearly USD 50 billion worth of Indian exports to the US.
The tariffs include 25 per cent duty as penalty over India’s oil purchases from Russia.
The Ministry of External Affairs has called the US tariffs “unfair, unjustified, and unreasonable,” defending its oil imports as critical for the energy security of its 1.4 billion citizens.
On Monday, Trump claimed that India offered to lower tariffs to “almost nothing but it’s getting late”.
His administration’s tariff strategy aims to protect the US industries and reduce trade deficit but risks straining ties with India, a key strategic partner against China.
Prime Minister Narendra Modi, who has maintained a personal rapport with Trump, has reiterated India’s commitment to its national interests.
With the sixth round of trade talks deferred in August, both nations express cautious optimism for a resolution.
US Treasury Secretary Scott Bessent described the relationship as “very complicated” but suggested the two sides would eventually “come together.”
Commerce Minister Piyush Goyal on Tuesday also stated that India is in dialogue with the US for the bilateral trade agreement, which both the countries announced in February.