Commerce and Industry Minister Piyush Goyal on Friday said that though next US president Donald Trump has called India a “tariff king”, he highlighted that in addition to this, he has mentioned PM Narendra Modi is a great leader. Speaking at the Business Today MPW session in Mumbai, Goyal, mentioning about the high tariffs and trade between India and the US, said India doesn’t mind slashing tariffs for products there is no competition.
“Products where there is no competition. We don’t manufacture heavy bikes like Harley-Davidson motorcycles. We won’t have any problem in taking a request in this regard,” Goyal said on Friday.
“We are not worried about tariffs. If it’s a tariff hike on China, it only helps India. If it’s a tariff hike on everybody, we are all in the same boat. We will still continue to do well. But I personally believe India is looked upon as a trusted partner by the democratic world,” Goyal said.
During his first term as president, Donald Trump referred to India as a “tariff king”. In an interview last August, Trump expressed his disapproval of India’s high tax rates.
In 2019, India imposed retaliatory tariffs on several US products in response to Washington’s decision not to exempt Delhi from increased taxes on steel and aluminum imports. Trump, during his presidency, revoked India’s preferential trade treatment due to the tariff disagreement. He also threatened sanctions if India proceeded with purchasing oil from Iran or acquiring Russian S-400 anti-aircraft missiles.
Trump highlighted the issue of high tariffs on Harley-Davidson motorcycles during his presidency, using it as a prime example of the trade imbalance between the US and India.
US-India trade ties
In a September report released by market research firm Nomura, the potential impacts of a second term for US President Donald Trump on the U.S. economy, geopolitics, financial markets, and the global landscape – particularly in Asia – were assessed. Interestingly, despite Trump’s firm stance on trade and the dollar, the report suggested that his presidency could prove advantageous for India.
The report pointed out two main areas of concern regarding trade relations between India and the U.S. under a Trump 2.0 administration. Firstly, India’s trade surplus with the U.S. could come under scrutiny. Secondly, the Trump government might take punitive actions against countries believed to be artificially devaluing their currencies.
Despite these possible challenges, the report highlighted that any short-term disruptions are expected to be offset by America’s “China Plus One” strategy, which seeks to relocate supply chains from China to more favorable destinations like India. This shift in policy is predicted to gain traction throughout Trump’s tenure.
