“We Get Along Very Well, But…”: Trump Comments on US-India Trade Tensions

US President Donald Trump has criticised India's trade policies, describing them as heavily skewed. He accused New Delhi of imposing some of the world's highest tariffs, which he believes have led to a one-sided economic relationship between the two nations.

Speaking from the Oval Office, Trump stated, "We get along with India very well, but for many years, it was a one-sided relationship. Only now, since I came along and because of the power that we have with us, India was charging us tremendous tariffs, about the highest in the world, and we therefore weren't doing much business with India, but they were doing business with us because we weren't charging them foolishly. We weren't charging them."

Impact on American Manufacturers

The US president claimed that India's trade practices had adversely affected American manufacturers. He explained that Indian products flooded the US market without reciprocal access for American goods due to high tariffs. This situation resulted in significant losses for US manufacturers.

Trump highlighted Harley-Davidson's challenges in India as an example. The motorcycle brand faced a 200 percent tariff on its products in India, forcing it to establish a local manufacturing plant to bypass these duties.

Shift in Production Trends

Trump argued that unfair tariff structures were prompting companies to relocate production outside the US. However, he noted that his administration's trade policies were beginning to reverse this trend by encouraging companies to return to America.

"So what we're doing is literally thousands of companies are coming into the US, car companies, AI, but, you know, more traditionally, car companies. We have so many car company factories under construction or being designed right now. And they're coming from China, they're coming from Mexico, I must tell you, and they're coming from Canada. But they're coming into our country because they want to build here," Trump said.

India's Tariff Concessions

Earlier this week, Trump mentioned that India had offered to reduce its tariffs significantly. However, he expressed concerns about the timing of this offer and reiterated his dissatisfaction with India's trade decisions.

On social media platforms, Trump voiced his frustration over India's reliance on Moscow for oil and military equipment while maintaining a trade imbalance with the US. He emphasised that despite being a major client for Indian goods, America had not received similar treatment in return.

Prime Minister Modi's Response

In response to these pressures from Washington, Prime Minister Narendra Modi reaffirmed India's commitment to domestic priorities. He emphasised that protecting farmers and small industries would remain paramount for his government.

"For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it and I am ready for it. India is ready for it," PM Modi said at an event in New Delhi.

US Tariffs on Indian Exports

The Trump administration has already imposed significant levies on Indian exports as part of its trade strategy. Washington introduced 25 percent reciprocal tariffs on Indian goods and added another 25 percent duty related to New Delhi's purchase of Russian oil.

This ongoing trade tension coincides with Prime Minister Modi's discussions with Russian President Vladimir Putin and Chinese President Xi Jinping at the Shanghai Cooperation Organisation summit in Tianjin.