US President Donald Trump on Monday reasoned the 50 per cent tariffs that he has imposed on Indian goods and said that while America "got along very well" with India, it shared a one-sided relationship with the country for many years because of the "tremendous tariffs" on American goods.
Trump and his White House officials have given several justifications for the President's move to double India's tariff from 25 per cent to 50 per cent by imposing a penalty levy for New Delhi's Russian oil purchases against the backdrop of the ongoing Ukraine war.
Addressing reporters from the Oval Office, Trump said, "We get along with India very well, but for many years it was a one-sided relationship... India was charging us tremendous tariffs, the highest in the world."
ALSO READ | 'Can't allow Trump's ego…': Congressman cites ‘Nobel’ reason for US tariffs on India
He reiterated that India's tariffs on US goods were about the highest in the world, adding that Washington was not doing much business with New Delhi, but "they were doing business with us because we weren't charging foolishly".
Trump said that India would send "massive amounts of everything" they produced to the US, resulting in those goods not being made in America, which the President termed as "a negative".
{{/usCountry}}Trump said that India would send "massive amounts of everything" they produced to the US, resulting in those goods not being made in America, which the President termed as "a negative".
{{/usCountry}}"But we would not send in anything because they were charging us 100% tariffs. For example, Harley-Davidson couldn't sell in India. There was a 200% tariff on a motorcycle. Harley-Davidson went to India and built a motorcycle plant. Now they don't have to pay tariffs," he said.
Trump has also made the 'Harley-Davidson' remark previously. In 2018, the President had reportedly made remarks on India's imposition of a 100 per cent duty on the iconic motorcycle.
ALSO READ | PM's dig at Trump tariffs? ‘India growing despite economic selfishness in world’
He further went on to explain that this is why companies are now coming into the US and setting up their manufacturing or construction units here, noting that "tariffs are protecting them and they want to avoid paying".
"We have many car company factories under construction; they're coming from China, Mexico and Canada... They're coming because they want to build here for two reasons. Number 1, they'd like to be here. And number 2, the tariffs are protecting them. And number 3, they want to avoid paying tariffs," the President said while addressing reporters.
Trump added, "When they build their cars here, they don't have to pay any tariffs. When you build here, you don't have any tariffs."
India in talks with US
On Tuesday, Union commerce and industry minister Piyush Goyal said that India is negotiating a bilateral trade agreement (BTA) with the US.
“We are in dialogue with the US for a BTA,” Goyal said at an industry chamber event on sustainability.
ALSO READ | 'Getting late': Donald Trump says India offered zero tariffs, terms ties as 'totally one-sided'
India and the US have been negotiating a deal since March, having completed five rounds of talks so far.
After Trump imposed a 50 per cent duty on India, the team of US officials deferred its visit to New Delhi for the next round of talks, which was set to take place from August 25.
So far, no new dates for the negotiations have been finalised.