US President Donald Trump has ruled out reducing the tariffs on India, just a week after the US doubled import duties on Indian goods to 50% over New Delhi’s continued purchase of Russian oil.
‘One-sided relationship with India’: Trump
He said that while the US has good relations with India, he believes trade between the two countries has long been unbalanced because of India’s high import duties. According to him, India has charged some of the world’s steepest tariffs for many years, creating what he sees as a one-sided relationship.
“No, we get along with India very well, but for many years, it was a one sided relationship. You have to understand, the relationship got better only since I came along and because of the power that we have with tariffs,” Trump said, when asked if he might consider easing the tariffs on India.
He reiterated that India was charging the US with “tremendous tariffs, about the highest in the world”, which is why the US wasn’t doing any business with India, even though India was “sending/pouring everything into the US”. He further added that the US was “not doing much business with India, but they were doing business with us, because we weren’t charging them, foolishly. So they were sending us everything, pouring it into our country, therefore wouldn’t be made here.”
‘Harley Davidson did not sell in India because of 200% tariffs,’ says Trump
He cited Harley Davidson as an example, saying the company struggled to sell motorcycles in India because of a 200% tariff. To get around this, Harley Davidson set up a factory in India, which allowed it to avoid paying the heavy duty.
He then explained that the US is now witnessing a similar trend in reverse. Thousands of companies, especially in the automobile sector but also in areas like artificial intelligence, are moving production to the US. Many car companies are either under construction or in the planning stage, with firms coming from China, Mexico, and Canada.
According to him, these companies are choosing to build in the US for three main reasons: they want a presence in the American market, they are encouraged by tariff protection, and they want to avoid paying tariffs. Once they manufacture in the US, there are no such duties on their products.
The decision to impose tariffs came despite months of negotiations between Washington and New Delhi. The sudden move left New Delhi shocked, as US trade negotiators have often expressed frustration over India’s protectionist policies. Initially, Trump set a 25% duty on Indian exports, but last week this was raised to 50%. The increase affects over 55% of Indian goods sold in the US, which is also India’s largest export market.
Trump watching Putin ‘very closely’
Trump has repeatedly voiced dissatisfaction with India’s oil imports from Russia, which New Delhi defends as essential to keep prices affordable. Critics argue that purchases by India and China are helping Moscow maintain its economy and weakening Western sanctions aimed at curbing Russia’s military campaign in Ukraine.
The US President also said he was closely monitoring Russian President Vladimir Putin’s response to efforts for a possible meeting with Ukraine’s leader. He hinted that further action could be taken if peace talks did not move forward.
Trump wrote on social media on Monday that India had offered to slash its tariffs to zero, though he did not specify when this offer was made or if Washington would consider restarting trade talks. “It’s getting late. They should have done so years ago,” he added.
