Why Does Trump Call India-US Relations ‘One-Sided’?

Synopsis
Key Takeaways
- Trump describes the India-US trade relationship as 'one-sided.'
- High tariffs are a barrier for American exports to India.
- Previous administrations failed to address trade imbalances.
- India has reduced tariffs on foreign motorcycles recently.
- Trade negotiations are ongoing between the US and India.
Washington, Sep 3 (NationPress) US President Donald Trump has once again voiced his concerns regarding India’s trade practices, describing the relationship between India and the US as “one-sided for numerous years” and highlighting high tariffs as a significant obstacle for American exports.
“We have a good relationship with India,” Trump stated. “However, you must recognize that for many years, it has been a one-sided arrangement.”
He reiterated his claims that India’s tariffs on American exports are “among the highest globally.”
“India was imposing tremendous tariffs, some of the highest globally. They were indeed the highest. Consequently, we were not conducting much business with India. Yet, they were engaging with us because we weren’t imposing unreasonable charges,” he continued.
The president contended that previous administrations had neglected to respond while India flooded the US market with goods. “They would send a vast array of products… flooding our country. As a result, those products wouldn’t be manufactured here. However, we wouldn’t export anything due to their 100 percent tariffs,” Trump explained.
According to data from the World Trade Organisation (WTO) and the World Bank, India does not possess the highest tariffs worldwide. Nonetheless, it enforces high duties in certain sectors, especially agriculture, to safeguard its farmers.
The US president again referenced his frequently mentioned example from his first term - India’s exorbitant tariffs on Harley-Davidson motorcycles.
“Harley-Davidson couldn’t penetrate the Indian market due to a 200 percent tariff on motorcycles. So, what occurred? Harley-Davidson established a motorcycle assembly plant in India, allowing them to circumvent those tariffs,” Trump remarked.
Indeed, Harley-Davidson set up an assembly facility in Haryana but closed it in 2020 due to insufficient sales. In February, the Indian government reduced import duties on foreign motorcycles from 50 percent to 30-40 percent.
Prior to the abrupt imposition of 25 percent tariffs on Indian imports in August by the Trump administration, India and the United States had been engaged in months of trade discussions, which later escalated to 50 percent tariffs in response to New Delhi’s purchase of Russian oil.
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