Trump warns India of reciprocal tariffs; shares PM Modi's response

Trump Vows Reciprocal Tariffs on India, Recalls PM Modi's Witty Response During Trade Talks

In a campaign speech that could have significant implications for Indo-US trade relations, former President Donald Trump warned India of imposing reciprocal tariffs if he returns to power, while fondly recalling a humorous exchange with Prime Minister Narendra Modi about Harley-Davidson motorcycles.  

Addressing supporters in Iowa, Trump criticized India's high import duties on American products, particularly targeting the 100% tariff on Harley-Davidsons. "They charge us 100% tariffs - can you believe that? If they want to keep taxing our products, we'll tax theirs the same way - maybe even more," Trump declared, signaling a potential return to his aggressive trade policies.  

However, the former president then shared a lighthearted moment from his dealings with PM Modi. "I told Modi, 'You're taxing our beautiful Harleys at 100%, that's unacceptable.' And you know what he said? 'But Donald, we don't have any riders in India!'" Trump recounted, drawing laughter from the crowd. The anecdote highlighted the personal rapport between the two leaders during Trump's presidency.  

Trade experts suggest Trump's comments reflect ongoing tensions in bilateral trade, where India maintains high tariffs on agricultural and manufactured goods while seeking greater access for its pharmaceutical and technology services. The US remains India's largest trading partner, with bilateral trade crossing $130 billion in 2022.  

Indian officials responded cautiously to Trump's remarks, with sources emphasizing that trade discussions have historically been balanced by strong strategic ties. "The relationship has weathered many trade disputes before," a Commerce Ministry official noted, pointing to continued growth in bilateral trade despite past friction.  

The comments come at a sensitive time, with the US presidential elections approaching and India carefully navigating its economic diplomacy. While PM Modi has strengthened ties with the Biden administration, New Delhi remembers working constructively with Trump on defense and strategic matters despite trade disagreements.  

Business leaders on both sides are watching developments closely, hoping that any future tariff actions won't disrupt the growing economic partnership. As one industry representative put it, "Trade tensions come and go, but the fundamentals of this relationship are too important for either side to risk."