US President Donald Trump sharply criticized India’s trade policies on Tuesday, claiming New Delhi imposes some of the highest tariffs in the world. He described the long-standing economic relationship between the two countries as “one-sided,” arguing that American businesses have been at a disadvantage for years.
Speaking from the Oval Office, Trump focused on the example of Harley-Davidson motorcycles to highlight what he sees as unfair trade practices.
Harley-Davidson dispute
Trump recalled how India once levied a 200 percent duty on imported motorcycles, making it nearly impossible for Harley-Davidson to compete in the Indian market.
“Harley-Davidson couldn’t sell into India. There was a 200 percent 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 tariffs. Same thing as us,” Trump said.
India’s high tariffs “hurt American manufacturers”
The US President said the imbalance allowed India to freely export to the United States, while American goods faced heavy barriers.
“We get along with India very well, but for many years, it was a one-sided relationship. Only now, since I came along and because of the power that we have with us, India was charging us tremendous tariffs, about the highest in the world, and we therefore weren’t doing much business with India, but they were doing business with us because we weren’t charging them foolishly. We weren’t charging them,” Trump remarked.
He argued that these steep tariffs damaged US manufacturing and sent jobs overseas.
“So they would send in massive, you know, everything they made, they’d send it in, it poured into our country. Therefore, it wouldn’t be made here, you know, which is a negative. But we would not send in anything because they were charging us 100 percent tariffs,” Trump added.
Push for reciprocal tariffs
Trump claimed his administration’s policies were starting to change this pattern by introducing higher, reciprocal tariffs. He said these measures were encouraging American companies to return production to the United States instead of moving factories abroad.
Trade talks stall amid tensions
Negotiations between Washington and New Delhi began in April with hopes of resolving disputes. There were reports that India might allow duty-free imports of a limited number of Harley-Davidson bikes as part of the talks.
However, those discussions have now stalled. In response to what it views as US tariff aggression, India has shifted focus toward strengthening its economic ties with China and Russia.
This shift marks a new phase in the strained relationship, as both nations weigh their trade strategies amid rising global tensions.