Donald Trump Criticises India’s High Tariffs, Promises Reciprocal Tax If Re-Elected

Former US President and Republican presidential candidate Donald Trump said he would impose a reciprocal tax on countries like India if re-elected. Trump also criticised India for imposing high tariffs on foreign goods. Speaking at the Detroit Economic Club on Oct. 10, Trump said that India, among major global economies, applies some of the highest tariffs, particularly in comparison to the United States.

"Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity," Trump stated. He elaborated that the US does not typically charge significant tariffs but emphasised the disparity in trade policies with countries such as China, Brazil, and India. “China will charge us a 200% tariff. Brazil is a big charger. The biggest charger of all is India,” he said during his speech.

Trump, however, acknowledged his positive relationship with Indian Prime Minister Narendra Modi. 

“India is a very big charger. We have a great relationship with India, I did, especially the leader, Modi. He's a great leader. But they probably charge as much, I mean, in many ways, I think they probably charge more than China. But they do it with a smile,” the former US President said.

Trump then went on to use the example of motorcycle manufacturer Harley Davidson to prove his point. Recalling a meeting with the company’s representatives during his presidency, Trump recounted their struggles with India’s steep tariffs. “I said, how's business? Good, good. What are the bad countries? Well, India is very tough. Why? Tariffs. I said, what are they? And they said like 150%, some massive amount,” he said.

Trump further criticised the conditions imposed by India, explaining that Harley Davidson was encouraged to build a manufacturing plant in India in exchange for tariff relief. “They said, if you go there and build your plant, we're not going to charge you anything. I said I don't like that. And I see they went, they built the plant, and now they do their business with India,” Trump explained, lamenting the impact such moves have had on American companies.

Trump’s comments on Oct. 10 followed an earlier praise for Prime Minister Narendra Modi. He called PM Modi “nicest” human being and “a friend of mine.” Trump also recalled the success of the ‘Howdy Modi’ event held in Houston, Texas, in 2019 during his presidency. The former US president highlighted the massive turnout the event generated.