US President Donald Trump on Thursday declared that no exemptions would be given for United States tariffs imposed on India. He said the US would adopt reciprocal tariffs so that it would charge the same duty on Indian goods as India charges on American exports.
Trump said this during a bilateral press conference with Prime Minister Narendra Modi at the White House, adding that India has traditionally kept very high tariffs and it had become very tough for American companies to sell products there.
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“We are currently a reciprocal nation… We’re going to have the same. Whatever India is paying us, we’re paying them and I believe it is only fair,” Trump said.
He also said that he had planned to roll out this policy in his first term but withheld it because of the COVID-19 pandemic. Trump claimed that he did not impose reciprocal tariffs on nations such as India, France, and Italy during the world crisis for humanitarian reasons.
US-India Trade Relations
The Office of the U.S. Trade Representative puts the value of goods traded between India and the US in 2024 at about $129.2 billion. India’s exports to the US grew by 4.5% compared to 2023 to $87.4 billion, while US exports to India grew by 3.4% to $41.8 billion.
The two countries’ trade deficit increased by 5.4%, standing at $45.7 billion in 2024. The trade deficit results when a country imports more goods and services compared to the goods and services it exports, and this indicates the trade imbalance between the US and India.
The Harley-Davidson Issue
Trump was asked about India’s tariff regime prior to the joint press conference. He repeated that India has always levied high tariffs and is, therefore, one of the foremost countries in doing so.
“I recall when Harley Davidson could not sell their motorcycles in India due to the fact that in India – the tax was so high, the tariff was so high, and Harley was compelled to manufacture. But I believe they constructed a factory in India so that they don’t have to pay the tariffs. And that’s what individuals can do with us. They can construct a factory here, a plant or whatever it is here and that encompasses the medical, that encompasses cars, that encompasses chips and semiconductors,” Trump said.
Modi’s US visit, which spans two days, marks his first bilateral talks with Trump since the US President assumed office for a second term in January. The discussions have focused on strengthening trade ties while addressing key economic concerns between the two nations.
