US President Donald Trump on Tuesday accused India, once again, of unfair tariff policies, quoting Harley Davidson as a case in point of unfair trade practices. He said New Delhi had placed "tremendous tariffs, one of the highest in the world," whereas America let Indian goods enter its market without such curbs.
“They would send in massive, you know, everything they made, they’d send it in, pour it into our country. Therefore it wouldn’t be made here, which is a negative. But we would not send in anything because they were charging us 100% tariffs,” he said, citing Harley Davidson as one such instance.
Trump pointed to the case of Harley Davidson, asserting, "Harley Davidson, Harley Davidson couldn't sell into India. There was a 200% tariff on a motorcycle. So what happens? Harley Davidson went to India and built a motorcycle plant and now they don't have to pay tariffs,"
Moreover, Trump referenced proposals to ask the Supreme Court for an "expedited ruling" after a lower court ruled that numerous of his tariffs were illegal.
“We’re going to be going to the Supreme Court, we think tomorrow,” he said. This comes after a US federal appeals court ruled on August 30 that most of the tariffs implemented under Trump's state of emergency were illegal, contradicting a key element of his trade policy. In a 7-4 decision, the court ruled that the International Emergency Economic Powers Act (IEEPA) does not provide for the president to introduce tariffs.
Trump had called the ruling a “total disaster for the Country,” while the White House said, “The President’s tariffs remain in effect… we look forward to ultimate victory.”
The decision affects Trump's "reciprocal" tariffs on nations such as China, Canada, and Mexico, but not other tariffs such as steel and aluminium.
Trump called the decision a "total disaster for the Country," while the White House stood by, stating, "The President's tariffs remain in effect… we look forward to ultimate victory."
Reciprocal tariffs of 25% were levied by the Trump administration on Indian exports, with an extra 25% charge on oil imports traceable to Russia, which brought the cumulative duties to 50%, one of the highest in the world.
In the meantime, talks for a Bilateral Trade Agreement (BTA) between the US and India are taking place. Commerce Minister Piyush Goyal was hopeful the agreement would be concluded by November.
Speaking at the Annual Global Investor Conference 2025 in Mumbai, he indicated that "a little bit of geopolitical" issues have hindered the negotiations.
"We have had a little bit of geopolitical issues overtaking trade issues in our negotiations with the United States of America," Goyal noted. India has drawn "red lines" in talks, refusing to open its agriculture and dairy sectors and maintaining "strategic autonomy" in trade with Russia, the minister said.
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