Washington:US President Donald Trump said that Prime Minister Narendra Modi is a good friend and expressed confidence that the United States and India would reach a trade agreement.”We will get to a deal because I like your prime minister a lot. He is a good friend of mine. We get along great, and we are gonna make a deal,” Trump told reporters at the Oval Office on Thursday.
Responding to a question on the trade deal being negotiated between the two countries, Trump said India had taken advantage of US policies for years and charged tremendous tariffs.
“They charged tremendous amounts of tariffs to our companies, and we didn’t charge them anything,” Trump said.
A US delegation was in India earlier this week and concluded four days of negotiations on an interim bilateral agreement on Thursday.
India’s commerce ministry said the trade talks were marked by a spirit of cooperation and pragmatism, with both sides reaffirming their commitment to concluding a mutually beneficial agreement that strengthens bilateral trade and economic ties.
Trump also referred to the case of Harley-Davidson motorcycles, arguing that high tariffs had made it difficult for the iconic American manufacturer to sell its two-wheelers in India.
“In the past, they wouldn’t let Harley-Davidson sell its motorcycles. They charged a 200 per cent tariff, so Harley-Davidson was precluded. They ended up going to India and building their own plants, which is unfortunate that that happened, but it happens. It was before me,” Trump said.
He contrasted this with the US tariff policies, saying motorcycle brands from India faced no such barriers in the American market.
“They sold motorbikes here, too. You know (how much) we charged them? Nothing. And now it’s the exact reverse. We’re making a lot of money with India,” Trump said.
On February 7, after a phone call between Trump and Modi, India and the US issued a joint statement finalising the contours or framework of the first phase of the Bilateral Trade Agreement (BTA) or an interim trade deal.
According to that framework, the US had agreed to reduce tariffs on India to 18 per cent from 50 per cent. It had removed the 25 per cent tariffs on Indian goods for buying Russian oil and was to cut the remaining 25 per cent to 18 per cent under the pact.
However, the US Supreme Court on February 20 ruled against Trump’s sweeping reciprocal tariffs, which were imposed under the 1977 International Emergency Economic Powers Act (IEEPA).
After that, the US president announced the imposition of 10 per cent tariffs on all countries for 150 days, starting February 24. India and the US have been re-negotiating the trade deal in the wake of the Supreme Court order and the subsequent developments. PTI SKU RHL
06050423
NNNN