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Trump recycles 'Harley Davidson' argument for tariffs on India, cites trade gap
Though Trump said Harley Davidson and similar bikes faced a “200%” tariff, the rate was actually 100% when he first cited it in 2018 and was later reduced.
US President Donald Trump on Tuesday pointed to the Harley Davidson example while addressing the current 50 per cent tariffs on India, saying the country was imposing some of the highest duties in the world.
Addressing a press conference from the Oval Office, Trump said, “So we were not doing much business with India, but they were doing business with us because we weren’t charging them — foolishly. So everything they made, they sent into the US — it poured into the US market — and we were not sending anything because they were charging us a 100 per cent tariff.”
He added, “I’ll give you an example — Harley Davidson. They could not sell in India as there was a 200 per cent tariff on a motorcycle.”
While Trump claimed the tariff (also called import duty in this case) on Harley Davidson and other such bikes was “200 per cent”, the actual rate was 100 per cent when he first raised the example in 2018, before later being reduced. According to a Hindustan Times report from Washington, published on October 2, 2018, Trump made his comments referring to India imposing 100% duty on iconic motorcycle, Harley-Davidson. Since then, import duties on bikes up to 1,600 cc and above 1,600 cc have been slashed gradually, down to 40% and 30%, respectively, in the most recent union budget.
Reports in April, when trade deal talks first began, said India could allow zero import duty on a set quota of such bikes. But the talks are now stalled, and India is looking eastward to China and to its trusted old partner, Russia, to tackle the tariff aggression.
Speaking about trade, he said countries like Japan were open to deals. “One of the leaders of one of these countries, a friend, told me... ‘It is amazing we got away with it for so long.’”
On whether he would consider reducing India’s 50 per cent tariff, Trump responded, “We get along with India very well. But you have to understand, for many years it was a one-sided relationship.”
He added, “It’s only changed now after I came along, and because of the power that we have. India was charging us tariffs that were about the highest in the world.”
