Washington, Feb 14 (IANS) President Donald Trump referred to Prime Minister Narendra Modi as a “significantly tougher negotiator” during discussions on tariffs. “He is much more skilled in negotiations than I am. It’s not even close,” Trump remarked at a press conference following their bilateral meeting, which prominently featured tariffs.
Trump, who announced a new approach for reciprocal tariffs earlier that day, criticized India as the “highest tariff nation in the world”. “Selling products in India is challenging due to their strong trade barriers and tariffs,” Trump noted, emphasizing the substantial trade deficit of $98.4 billion that the US faces as a core issue in his trade policies.
He indicated that the US might impose tariffs in response to those charged by India and other countries on US imports. “We are currently operating as a reciprocal nation,” he stated. “Whatever tariffs India imposes on US goods, we will impose the same.” He added, “This approach is straightforward—if you impose a charge, we will do the same. I believe this is just and fair for both the US and India.”
While presenting his plan for reciprocal tariffs earlier on Thursday, Trump did not define specific new tariffs but rather directed his appointees, Howard Lutnick for commerce secretary and Jamieson for international trade representative, to devise a detailed tariff strategy for each nation within 180 days. Post memorandum signing, Trump also addressed his ongoing grievance with India regarding Harley Davidson motorcycles.
“Harley Davidson faced challenges selling their motorcycles in India due to excessively high taxes and tariffs,” he commented. “I believe they established a factory in India to circumvent these tariffs,” he added. “This is a strategy others could use with us: if manufacturing is done locally, there are no tariffs.”
The White House’s fact sheet on reciprocal tariffs contained erroneous statements regarding India and Harley Davidson. The document claimed that India “imposes a 100% tariff on US motorcycles, compared to only a 2.4% tariff on Indian motorcycles.” However, it has been established that India previously reduced tariffs on heavier Harley Davidson bikes to 50% and recently adjusted them further down to 30%, while lowering tariffs for other models to 40% in the latest budget.
NEW DELHI — Prime Minister Narendra Modi’s enduring camaraderie with President Donald Trump is set for scrutiny as the Indian leader embarks on a Washington visit this Wednesday, aiming to sidestep tariffs that have impacted others along with looming threats of additional taxes on imports.
As a pivotal strategic ally of the United States, India has thus far managed to avoid new tariffs, and the two leaders have nurtured a personal relationship. Modi, a nationalist facing criticism over India’s erosion of democratic principles, has welcomed Trump back to the White House, hoping to recalibrate India’s ties with the West amid ongoing tensions regarding Russia’s war on Ukraine.
Nevertheless, Trump has often labeled India as a “tariff king” and has pressured the country on the issue of migrant deportations. In reply, New Delhi has shown a readiness to reduce its own tariffs on U.S. goods, accept the return of Indian citizens, and increase purchases of American oil.
However, with tariff threats on the horizon, the critical question remains regarding the extent to which a strong rapport between the two leaders will influence negotiations and how far India will be willing to compromise to strike a deal.
Modi had fostered a effective working relationship with Trump during the latter’s first term, and the two have the potential to enhance areas of mutual interest while “minimizing points of contention without yielding on central national interests,” as noted by Meera Shankar, India’s former ambassador to the United States.
“Compared to other partners, most have their reciprocal lists prepared from the outset, as it provides leverage during negotiations,” Shankar added, expressing optimism that India will “strike the right balance between assertiveness and adaptability” regarding the tariff issue.
With his ruling Hindu nationalist party freshly victorious in a high-stakes state legislature election last weekend in India’s federal territory, including New Delhi, Modi stated before departing for Washington that the visit presents an “opportunity to build on” the cooperation established during Trump’s first term and to “deepen our partnership” across sectors such as technology, trade, defense, and energy.
During a conversation with Modi in January, Trump emphasized the necessity for India to increase its acquisition of American-made military equipment and to address the trade imbalance. In the previous year, the U.S. imported $50 billion more in goods from India than it exported to the country.
A summary from the White House at that time reflected Trump’s insistence on the importance of India boosting its procurement of American-made security products and progressing towards a fair bilateral trading relationship.
Earlier this month, India accepted the repatriation of 104 migrants who were flown back on a U.S. military aircraft, marking the first such flight to India as part of a crackdown initiated by the Trump administration.
Additionally, Modi’s administration has reduced certain elevated tariffs, including those on some Harley-Davidson motorcycles, cutting them from 50% to 40%. In 2023, India also eliminated retaliatory tariffs on U.S. almonds, apples, chickpeas, lentils, and walnuts.
“We can also anticipate that Modi will propose purchasing additional American (natural) gas to help mitigate the U.S. trade deficit,” commented Lisa Curtis, director of the Indo-Pacific security program at the Center for a New American Security, a Washington-based think tank. “This should provide some relief.”
CHINA RELATIONS
India is viewed as essential to the U.S. strategy aimed at containing China in the Indo-Pacific and is set to host a summit with a coalition known as the Quad — comprising the U.S., India, Japan, and Australia — later this year.
However, should there be a warming of relations between Washington and Beijing under Trump, India may need to reassess its position.
“Trump’s engagement with China could complicate India’s efforts to foster American interests in utilizing India as a counterweight to China, while avoiding becoming a proxy,” stated Happymon Jacob, founder of the New Delhi-based Council for Strategic and Defense Research.
India has made strides with China and agreed in December to seek resolutions for their protracted border disputes in the Himalayas following a military standoff that began with a deadly clash in 2020.
“Even a tactical adjustment between the U.S. and China carries implications for India,” Shankar remarked.
The U.S. stands as India’s largest trading partner, with a $50 billion trade deficit favoring India. The trade between India and the U.S. in goods and services amounted to approximately $190.1 billion in 2023. According to India’s External Affairs Ministry, U.S. exports to India reached nearly $70 billion, while imports stood at $120 billion.
Though India relies on Russia for nearly 60% of its defense supplies, the conflict in Ukraine has heightened concerns over future procurement, prompting New Delhi to explore options with the U.S., Israel, Britain, and others.
A recent agreement will enable U.S.-based General Electric to collaborate with India’s Hindustan Aeronautics on manufacturing jet engines for Indian aircraft domestically, alongside the sale of U.S.-made armed MQ-9B SeaGuardian drones.
Since 2008, India has procured over $20 billion in U.S.-origin defense equipment.
“This could be a domain where we witness synergies with the U.S.,” Shankar mentioned, adding that Trump will likely encourage India to acquire more defense assets.
Raja Mohan, an analyst at the Institute of South Asian Studies in Singapore, stated that Modi’s visit provides a timely opportunity to enhance Indo-U.S. relations.
“India’s diplomatic acumen will be put to the test, so the existing goodwill between Trump and Modi must translate into tangible results,” Mohan concluded.
FILE – Indian police officials escort immigrants, wearing masks, deported from the United States, who were among those who arrived in a U.S. military plane the previous day in Amritsar, upon their arrival at the Ahmedabad airport in India, Feb. 6, 2025. (AP Photo/Ajit Solanki, File)
FILE – President Joe Biden greets from left, Australia’s Prime Minister Anthony Albanese, India’s Prime Minister Narendra Modi, and Japan’s Prime Minister Fumio Kishida, at the Quad leaders summit at Archmere Academy in Claymont, Del., Sept. 21, 2024. (AP Photo/Mark Schiefelbein, File)
FILE – An Indian man parks his Harley Davidson Fat Boy motorcycle in New Delhi, India, March 1, 2017. (AP Photo/Manish Swarup, File)
FILE – U.S. President Donald Trump and Indian Prime Minister Narendra Modi embrace after giving a joint statement in New Delhi, India, Feb. 25, 2020. (AP Photo/Manish Swarup, File)
FILE – Indians crowd around Harley Davidson motorcycles at their stall during Auto Expo in New Delhi, India, Jan. 7, 2012. (AP Photo/Mustafa Quraishi, File)
EDITORS AND LIBRARIANS: KILL FROM YOUR SYSTEMS, ARCHIVES AND PUBLISHED PLATFORMS AP PHOTO DEL106 (IMAGE ID 25042378453065), SLUGGED INDIA US MODI AND TRANSMITTED ON FEB. 12, 2025. THE PHOTO HAS BEEN TONED IN A WAY THAT DOES NOT MEET AP’S STANDARDS. NO REPLACEMENT PHOTO WILL BE SENT. – FILE – Jaspal Singh, 36, one of the Indian immigrants deported by the United States talks to his relatives upon his return to his home near Amritsar, India, Feb. 6, 2025. (AP Photo/Prabhjot Gill, File)
FILE – U.S. President Donald Trump offers floral respects, with first lady Melania Trump standing beside him, at Raj Ghat, the memorial for Mahatma Gandhi, in New Delhi, India, Feb. 25, 2020. (AP Photo/Alex Brandon, File)
