As Republican Donald Trump eyes a historic comeback to the White House by defeating his Democratic contender and Vice President Kamala Harris, India is closely monitoring the likely impact of his presidency, particularly concerning trade relations. Recently Trump, in his remarks this October, had slammed India's tariff policies, alleging that the country imposes some of the highest tariffs on foreign products among major nations. He vowed to introduce a tit-for-tat tax if re-elected, which would impose similar tariffs on countries that he claims charge excessively high fees on American goods.
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Speaking at an economic policy event in Detroit this October, the former US President vowed to implement a reciprocal tax policy if he is elected president again, asserting that the US generally does not charge tariffs but faces steep import duties from countries like China, Brazil, and India.
"Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity," Trump said, explaining that the US usually doesn’t impose tariffs. "I started that process, and it was so great, with the vans and the small trucks," he added, referencing efforts to reduce trade imbalances. He went on to state that China charges a 200 percent tariff on US goods, but India, he argued, imposes even higher duties, sometimes exceeding those of China.
Trump also recounted a conversation from his presidency with Harley Davidson representatives, who raised concerns about the Indian market due to the country’s high tariffs. He recalled that Harley Davidson's tariffs in India reached as high as 150 percent.
Despite the high tariffs, the company was encouraged to set up a manufacturing plant in India, which would allow them to bypass these taxes. "We sell very few motorcycles in India, but they want us to go there and build a plant," Trump said. He stated that while the company eventually set up the plant, it was a move he personally did not support.
Despite his criticism of India’s trade policies, Trump praised Prime Minister Narendra Modi, describing him as a "great leader" and a "friend." "Modi is a friend of mine. He’s great," Trump had said, recalling PM Modi’s 2019 visit to Houston during the "Howdy Modi" event, which attracted a crowd of 80,000. "Before him, they were replacing leaders every year. It's very unstable. He came over. He’s a friend of mine. But on the outside, he looks like your father. He’s the nicest, but he’s a total killer."
Trump's comments on India's tariffs are part of his broader trade policy stance, which includes demands for fairer access to global markets. He has repeatedly labeled India as a "tariff king," accusing it of imposing some of the highest import taxes in the world. In 2019, he described India as one of the highest-taxing nations, calling its tariff policies "tremendously high."
PM Modi, on Wednesday, extended his wishes to Trump on his historic victory, expressing his eagerness to renew the collaboration between India and the United States.
Taking to microblogging site X, the Prime Minister wrote, "Heartiest congratulations my friend @realDonaldTrump on your historic election victory. As you build on the successes of your previous term, I look forward to renewing our collaboration to further strengthen the India-US Comprehensive Global and Strategic Partnership. Together, let’s work for the betterment of our people and to promote global peace, stability, and prosperity."
Trump secured pivotal wins in swing states Pennsylvania, North Carolina, and Georgia, bringing him within three electoral votes of securing the presidency. His strong performance in Pennsylvania, aided by reduced Democratic margins in key areas like Philadelphia, put him ahead by 175,000 votes. Trump also held onto North Carolina and Georgia, defeating Vice President Kamala Harris in both states. His focus on protectionist economic policies and immigration resonated with voters, solidifying his lead in these key battleground states as he heads into the final stretch of the election.
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