Donald Trump Claims India Willing to Cut 100% Tariffs on US Goods, ‘But…’

Introduction: A Familiar Voice, A Provocative Claim

Former US President Donald Trump is once again making headlines, this time with a bold claim about India’s trade posture. Speaking at a recent campaign rally in New Jersey, Trump said that India has shown readiness to eliminate 100% tariffs on American goods, but then added a loaded “but…” — suggesting that the gesture comes with strings attached, and perhaps more political maneuvering than economic goodwill.

This statement has reignited debate around US-India trade relations, tariffs, and how global economic diplomacy could evolve under a potential second Trump term.

🇮🇳 The Claim: India Ready to Cut 100% Tariffs

Trump’s remark came during a rally where he addressed multiple issues from inflation to foreign policy. While praising Indian Prime Minister Narendra Modi as a “tough negotiator” and a “great friend,” he also pulled no punches in stating:

“India puts 100% tariffs on our Harley-Davidsons, on our agricultural products. But they came to me and said, ‘We’ll cut them to zero, 100% reduction’ — but there’s always a ‘but’ with them. They want something in return.”

This is not the first time Trump has highlighted India's protectionist trade policies, but the tone this time was more conciliatory, albeit skeptical.

Fact Check: Does India Impose 100% Tariffs?

The claim isn’t without historical merit. India has indeed imposed high import tariffs, especially on:

• Motorcycles above 800cc (like Harley-Davidson) – as high as 100%

• Agricultural products, processed foods, and dairy

• Alcohol and wines

However, in recent years, especially during the Trump presidency, some tariffs were reduced or reconsidered, particularly after high-level bilateral trade talks.

India continues to maintain “bound tariffs” under WTO norms — giving it legal space to keep tariffs high while negotiating with key trade partners like the US.

Trump's "But": What Does India Want in Return?

Here’s where Trump’s statement becomes interesting. The suggestion that India is willing to remove tariffs only if it gets something in return isn’t far-fetched — because that’s how global trade negotiations work.

What Might India Want?

1. Restoration of GSP (Generalized System of Preferences)
   India lost duty-free export access to the US in 2019 when Trump suspended its GSP status. Restoration could be a key demand.

2. Greater H-1B Visa Access
   India has consistently sought liberal visa norms for its skilled professionals.

3. Technology Transfer Agreements
   India is looking to boost domestic manufacturing via tech partnerships with US firms, especially in defense and semiconductors.

4. Easing Restrictions on Pharma & Agri Products
   India wants fewer regulatory hurdles for its exports.

So yes, India might cut tariffs — but it certainly expects reciprocity, which is what Trump was hinting at.

Flashback: Trump and Modi’s Trade Tango

During Trump’s presidency (2016–2020), he and Modi developed a personal rapport, but that did not always translate into trade breakthroughs.

• A limited trade deal was almost finalized in 2020 but fell apart due to differences on dairy, medical devices, and digital trade.

• Trump repeatedly criticized India’s tariffs, famously calling India the “tariff king” at the 2018 UN General Assembly.

• Despite that, defense and strategic ties between the two nations deepened — leading to more arms sales and joint military drills.

The current claim seems to be a continuation of Trump’s old narrative: India respects US strength but negotiates hard — and doesn’t give anything for free.

The Trade Picture: Where Do US and India Stand Today?

 US-India Trade Snapshot (2023–2024 Estimates)

• Bilateral Trade Value: ~$191 billion (goods & services)

• US Exports to India: ~$60 billion

• US Imports from India: ~$131 billion

• Top US Exports: Oil, aircraft, machinery, gems

• Top Indian Exports: Pharmaceuticals, software services, textiles, jewelry

Tariff issues have been a sticking point, but non-tariff barriers like regulations, standards, and digital taxes are now the real bones of contention.

Political Reactions: Mixed, Measured, and Strategic

Indian Government:

While there has been no official response yet from New Delhi, sources in the Commerce Ministry suggest that Trump’s claim could be a half-truth aimed at mobilizing his base, especially the Indian-American vote bank.

Biden Administration:

So far, no comments have been made, but insiders believe that Trump’s aggressive stance on India trade forced the current administration to prioritize stability over disruption in dealing with New Delhi.

Experts Speak:

• Aparna Pande (Hudson Institute): “Trump’s comments reflect both his business-like approach and political instincts. India and the US have had disagreements, but the bigger picture remains strong.”

• Rajiv Bhatia (Gateway House): “India may offer tariff reductions selectively, but nothing comes without mutual concessions. Trump knows that.”

What’s at Stake: India’s Economic Strategy

India’s position is strategic. It wants to:

• Grow as a global manufacturing hub under its ‘Make in India’ mission

• Avoid trade deficits while protecting domestic industries

• Attract US companies looking to “China-plus-one” their supply chains

By selectively offering tariff cuts on US goods — especially high-value industrial imports — India could gain long-term access to capital, tech, and diplomatic favor.

However, India is also extremely cautious about agriculture and dairy markets, where US goods could threaten local livelihoods. Hence, any blanket tariff reduction is highly unlikely without detailed negotiations.

🇺🇸 Trump's Larger Message: America First, Round 2?

Trump’s rhetoric is aligned with his core ‘America First’ message. By showcasing that even strong nations like India want better access to the US market, he positions himself as a negotiator who makes other nations bend.

At the same time, his remarks can be read as a warning — that under a second Trump term, bilateral trade deals may become more transactional and less diplomatic.

That has implications not just for India, but for other major US trade partners like Mexico, China, and the EU.

The Indian-American Angle: Playing to the Diaspora?

It’s no secret that Indian-Americans form a politically influential bloc, especially in swing states like Texas, Florida, and New Jersey.

Trump’s mention of India — with praise for Modi but criticism for trade barriers — is a calculated move to:

• Reconnect with Indian-American voters

• Emphasize his “tough but fair” persona

• Position himself as a dealmaker, even in foreign policy

What the Markets Say

Trump’s remarks haven’t yet rattled the markets, but trade-sensitive sectors could see:

• Boosts in Harley-Davidson stock if hopes of lower Indian tariffs resurface

• Volatility in pharma exports, depending on further clarification

• Currency market tremors if broader Indo-US relations get affected

Tariffs, Trump, and the Tightrope

Donald Trump's assertion that India is willing to eliminate 100% tariffs on US goods — with a caveat — isn’t completely off-mark. It’s part of the diplomatic game both countries have played for years: offer something, demand more.

What’s clear is that Trump, now firmly back in campaign mode, is leveraging past foreign relationships as future promises. His claim, while vague, signals that India will remain central to any second-term trade agenda.

India, on its part, will continue to walk the tightrope: seeking better US ties while safeguarding its strategic autonomy and domestic interests.