US President Donald Trump has described Prime Minister Narendra Modi as a good friend and expressed confidence that the United States and India will finalize a trade agreement. Speaking to reporters at the Oval Office on Thursday, Trump stated, “We will get to a deal because I like your prime minister a lot. He is a good friend of mine. We get along great, and we are gonna make a deal.”
Trump Criticizes Past Indian Tariffs
Responding to a question about the ongoing trade negotiations, Trump accused India of taking advantage of US policies for years by imposing high tariffs on American goods. “They charged tremendous amounts of tariffs to our companies, and we didn’t charge them anything,” he said. Trump specifically cited the case of Harley-Davidson motorcycles, noting that India had imposed a 200 percent tariff on the iconic American brand, effectively barring it from the market. “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,” he added.
US Delegation Concludes Talks in India
A US delegation visited India earlier this week and concluded four days of negotiations on an interim bilateral trade agreement on Thursday. India’s commerce ministry described the talks as “marked by a spirit of cooperation and pragmatism,” with both sides reaffirming their commitment to a mutually beneficial deal that strengthens bilateral trade and economic ties.
Background of Trade Negotiations
On February 7, following a phone call between Trump and Modi, India and the US issued a joint statement outlining the framework for the first phase of the Bilateral Trade Agreement (BTA), or an interim trade deal. Under that framework, the US had agreed to reduce tariffs on India from 50 percent to 18 percent. It also removed 25 percent tariffs on Indian goods related to Russian oil purchases and planned to cut the remaining 25 percent to 18 percent. However, on February 20, the US Supreme Court ruled against Trump’s sweeping reciprocal tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA). Subsequently, Trump announced a 10 percent tariff on all countries for 150 days starting February 24. In light of the Supreme Court order and subsequent developments, India and the US have been renegotiating the trade deal.
Trump contrasted US tariff policies, noting that Indian motorcycle brands faced no 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,” he said.
