Trump repeats trade imbalance claim, cites ‘Harley Davidson’ example to defend high tariff on India

United States President Donald Trump on Tuesday defended his decision to impose a 50 per cent tariff on Indian goods, saying the business ties between the two nations had been “totally one-sided” for many decades.

Trump said the US got along with India “very well”, but New Delhi was charging the US some of the highest tariffs in the world, creating a trade imbalance.

"We get along with India very well. But, for many years, it was a one-sided relationship. India was charging us tremendous tariffs. They were the highest in the world,” he said, while talking to the media at the White House.

“Therefore, we were not doing business with India, but they were doing business with us because we weren't charging them foolishly. So they sent in everything they made and poured it into the country. But we would not send in anything, as they were charging us with 100 per cent tariffs," he added.

Trump cited the example of the US motor cycle company Harley Davidson to drive home his point.

"Harley Davidson couldn't sell in India, as there was a 200 per cent tariff on a motorcycle... Harley Davidson went to India and built a motorcycle plant, and now they don't have to pay tariffs," he said.

The US president further argued that thousands of companies, especially car companies, from China, Mexico and Canada are now shifting their production to America to avoid tariffs.

"Now thousands of companies are coming into the US. Traditionally, car companies. They are coming from China, Mexico, and Canada. They want to build here because, number one, they like to be here, and number two, the tariffs are protecting them. And number three, they want to avoid paying tariffs. When you build their cars here, you don't have any tariffs," he said.

On Monday, too, Trump had raised his allegation of trade imbalance with India.

"What few people understand is that we do very little business with India, but they do a tremendous amount of business with us. In other words, they sell us massive amounts of goods, their biggest 'client', but we sell them very little," he had said in a post on Truth Social.