Responding to a question on the trade deal negotiation, Trump alleged India had taken advantage of US policies for years and charged tremendous tariffs, and his policies are just reversing that.
Calling Prime Minister Narendra Modi his ‘good friend’, US President Donald Trump expressed confidence that Washington and New Delhi will reach a trade agreement soon. Trump’s assurance came days after his administration said the United States was planning to impose additional 12.5 per cent tariffs on goods from India and 53 other countries for allegedly failing to prohibit the forced labour.
“We will get to a deal because I like your prime minister a lot. I like your prime minister a lot. He is a good friend of mine, and we get along well. We have a good relationship,” Trump told reporters at the White House while discussing trade ties between the two countries.
Responding to a question on the trade deal negotiation, Trump alleged India had taken advantage of US policies for years and charged tremendous tariffs, and his policies are just reversing that.
“For years, India took advantage of the United States… They charged us tremendous tariffs and paid nothing… Now it is the exact reverse, and we are making a lot of money with India,” he said.
Trump’s Tariff Threat To India
A US delegation was in India earlier this week for negotiations on an interim bilateral agreement. The commerce ministry said the trade talks were marked by a spirit of cooperation and pragmatism, with both sides reaffirming their commitment to concluding a mutually beneficial agreement that strengthens bilateral trade and economic ties.
However, the United States also announced a fresh slew of additional tariffs of 12.5 per cent on key global economies, claiming that investigations have revealed goods being imported from 54 countries are allegedly produced via forced labour. The list includes countries such as Australia, China, India, Israel, Japan, Qatar, and Russia.
Trump On Harley-Davidson
Trump also referred to the case of Harley-Davidson motorcycles, arguing that high tariffs had made it difficult for the iconic American manufacturer to sell its two-wheelers in India.
“In the past, they wouldn’t let Harley-Davidson sell its motorcycles. They charged a 200 per cent tariff, so Harley-Davidson was precluded. They ended up going to India and building their own plants, which is unfortunate that that happened, but it happens. It was before me,” Trump said.
He contrasted this with the US tariff policies, saying motorcycle brands from India faced no such barriers in the American market.
“They sold motorbikes here, too. You know (how much) we charged them? Nothing. And now it’s the exact reverse. We’re making a lot of money with India,” Trump said.
India-US Trade Deal
On February 7, after a phone call between Trump and Modi, India and the US issued a joint statement finalising the contours or framework of the first phase of the Bilateral Trade Agreement (BTA) or an interim trade deal.
According to that framework, the US had agreed to reduce tariffs on India to 18 per cent from 50 per cent. It had removed the 25 per cent tariffs on Indian goods for buying Russian oil and was to cut the remaining 25 per cent to 18 per cent under the pact.