US President Donald Trump on Tuesday defended his decision to impose steep tariffs on Indian goods, accusing New Delhi of maintaining some of the highest duties in the world.
In response to a media query on the trade dispute, Trump said that relations with India were going well, but noted that for many years the relationship had been one-sided, with India imposing very high tariffs - among the highest in the world.
He further remarked that while India was doing significant business with the US, the reverse was not true, as American goods faced steep barriers. He said that India exported extensively to the US, but American products could hardly enter the Indian market because of tariffs as high as 100%, which the US had not been imposing in return.
The US imposed cumulative duties of 50% on Indian goods last month. This includes a 25% reciprocal tariff and an additional 25% levy aimed at penalising India for its continued purchase of Russian crude oil.
In his Oval Office address, Trump pointed to Harley Davidson as an example to justify the tariff move. He explained that with a 200% tariff on motorcycles, the company set up a plant in India to avoid the duty - something he argued the US should also be able to do. India earlier imposed a 50% duty on motorcycles with high engine capacity, which was reduced to 40% in the Union Budget announced in February this year.
Even as Trump criticised India for lopsided trade ties, data shows the US trade deficit is higher with other countries. According to the US Census Bureau, the deficit with India was $45.8 billion in 2024, compared with $295.5 billion with China and $123.5 billion with Vietnam. Vietnam faces tariffs of 20% under a July trade deal, while China, still negotiating a pact, faces 30% tariffs.
Meanwhile, India and the US remain engaged in trade negotiations despite tariff tensions. Talks were held in Washington in July, and another round was scheduled for late August in New Delhi but was delayed.
At the Annual Global Investor Conference 2025 in Mumbai, Union Commerce Minister Piyush Goyal said the deal could be wrapped up by the end of the year. He expressed hope that matters would return to normal soon and that a bilateral trade agreement would be concluded by around November, in line with what the two leaders had discussed in February.