Calling Prime Minister Narendra Modi a “good friend,” US President Donald Trump expressed optimism that India and the United States would soon finalize a trade agreement. His remarks came just days after his administration announced plans to impose an additional 12.5% tariff on imports from India and 53 other countries over concerns related to forced labour practices.
“We will reach a deal because I like your prime minister very much. He is a good friend of mine, and we share a strong relationship,” Trump said while speaking to reporters at the White House about trade relations between the two nations.
Addressing questions about ongoing trade negotiations, Trump claimed that India had benefited from US trade policies for years by imposing high tariffs while offering little in return. He said his administration’s approach was aimed at changing that balance.
“For years, India took advantage of the United States. They imposed tremendous tariffs and paid nothing. Now the situation has reversed, and we are making a lot of money with India,” Trump stated.
Trump Warns India With Fresh Tariff Threat
A US delegation visited India earlier this week for discussions on an interim bilateral trade agreement. The commerce ministry said the talks were held in a cooperative and practical atmosphere, with both countries reaffirming their commitment to finalising a mutually beneficial deal aimed at strengthening trade and economic relations.
A US delegation visited India earlier this week to hold talks on an interim bilateral agreement. According to the commerce ministry, the discussions were conducted in a spirit of cooperation and practicality, with both nations reiterating their commitment to finalising a mutually beneficial pact to enhance trade and economic partnerships.
However, the United States also announced a new round of additional 12.5% tariffs on major global economies, citing investigations that allegedly found goods imported from 54 countries were produced using forced labour. The countries named include Australia, China, India, Israel, Japan, Qatar, and Russia.
Trump Speaks Out on Harley-Davidson
Trump also cited the example of Harley-Davidson motorcycles, claiming that steep tariffs had made it difficult for the American manufacturer to sell its bikes in India.
“In the past, Harley-Davidson was not able to sell its motorcycles because of tariffs as high as 200%. As a result, the company eventually set up manufacturing operations in India. It’s unfortunate that happened, but it was before my time,” Trump said.
He contrasted this with US trade policies, arguing that Indian motorcycle brands did not face similar restrictions in the American market.
“They sold motorcycles in the US too, and do you know how much we charged them? Nothing. Now the situation is completely reversed, and we are making a lot of money with India,” Trump added.
India-US Trade Relations in Focus
Following a phone conversation between Trump and Modi on February 7, India and the United States released a joint statement outlining the framework for the first phase of the Bilateral Trade Agreement (BTA), also described as an interim trade pact.
Under the proposed framework, the US had agreed to lower tariffs on Indian goods from 50% to 18%. It had also withdrawn the additional 25% tariffs imposed on Indian imports linked to India’s purchase of Russian oil, with plans to reduce the remaining duties to 18% as part of the agreement.
However, on February 20, the US Supreme Court ruled against Trump’s broad reciprocal tariff measures introduced under the 1977 International Emergency Economic Powers Act (IEEPA).
Following the ruling, Trump announced a 10% tariff on imports from all countries for a period of 150 days beginning February 24. Since then, India and the US have continued renegotiating the trade agreement in light of the court’s decision and subsequent policy developments.