Trump vows reciprocal tariffs on India, calls it the biggest tariff charger

While the US imposes minimal tariffs on imports, countries like China and Brazil place hefty charges on American goods, but India surpasses all, says Donald Trump

Former US President Donald Trump, who is campaigning for another term in the White House, promised to introduce a system of "reciprocal tariffs" if re-elected. In an economic policy speech in Detroit on Thursday, the Republican candidate singled out India, claiming it imposes some of the highest tariffs on foreign goods among major global economies.

This is not the first time Trump has criticised India for its tariffs. Just last month, he called the nation a "big abuser" of US trade relations.

"Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity," Trump said, outlining his strategy for addressing trade imbalances. He claimed that while the US imposes minimal tariffs on imports, countries like China and Brazil place hefty charges on American goods. However, Trump asserted that India surpasses all others in terms of high tariffs.

Modi 'great leader', but India a 'big charger': Trump

"India is a very big charger," Trump said. While he praised Modi as a "great leader" who has done a commendable job in leading India, he criticised India's trade practices.

"They probably charge as much, if not more than China," Trump said, adding, "But they do it with a smile."

Trump referenced his earlier interactions with Harley-Davidson, the iconic American motorcycle manufacturer, to highlight India’s high tariffs. During his presidency, Trump said Harley-Davidson executives informed him of the 100 per cent tariff imposed on their motorcycles by India. Despite the challenges, Harley-Davidson eventually set up production facilities in India to sidestep the taxes and operate more freely in the country.

India a 'big abuser' of India-US ties: Trump

In September, Trump labelled India as a “big abuser” in its trade relationship with the US. These remarks were made ahead of Modi’s visit to the US for the Quad summit, a diplomatic meeting involving India, the US, Japan, and Australia. While Trump continued to praise Modi personally, calling him a "fantastic" leader, he has also consistently criticised India’s tariffs.

Trump and Modi have shared a cordial relationship over the years. Trump’s 2020 visit to India saw him welcomed with fanfare at the Motera stadium in Gujarat, the world’s largest cricket stadium. In return, during Modi’s 2019 visit to the US, Trump joined the Indian Prime Minister at the "Howdy Modi!" event in Texas, showcasing their camaraderie on the global stage.

Despite this friendship, Trump’s criticisms of India’s tariffs have been persistent. In his Detroit address, Trump described Modi as “the nicest human being” with a serious demeanour and also as “a total killer” in reference to his leadership style. He has referred to Modi as "fantastic" and “a friend of mine.”