Washington: When US President Donald Trump speaks of international trade, one example almost always makes a comeback: Harley Davidson motorcycles and India’s tariffs. On Tuesday, Trump once again recycled the claim that India imposed a “200% tariff” on the iconic American bikes, casting it as evidence of Washington’s long-standing disadvantage in trade relations. But as with much of Trump’s rhetoric, the numbers tell a more complex story.
Addressing a press conference from the Oval Office, Trump said, “So we were not doing much business with India, but they were doing business with us because we weren’t charging them — foolishly. So everything they made, they sent into the US — it poured into the US market — and we were not sending anything because they were charging us a 100 per cent tariff.”
“I’ll give you an example — Harley Davidson. They could not sell in India as there was a 200 per cent tariff on a motorcycle,” he added.
In 2018, when Trump first raised the Harley Davidson issue, India’s actual import duty on high-powered motorcycles was 100%, not 200%. The tariff was subsequently reduced in phases, falling to 50%, then 40%, and today stands at 30% for bikes above 1,600 cc. That means the “200%” figure is not only exaggerated but also outdated.
However, the Harley Davidson reference was never just about motorcycles. It became a symbol of what Trump framed as a one-sided trade dynamic, where India was accused of enjoying freer access to the US market while keeping barriers high against American goods.
Harley Davidson, as a brand, embodies American manufacturing, working-class pride, and cultural identity. By highlighting it, Trump tapped into a political narrative that resonates with his voter base: America being taken advantage of by foreign nations until his intervention. For Trump, the tariff figure is less about accuracy and more about symbolism.
India has, in fact, reformed its tariff structures in recent years — often under pressure from Washington. Yet, the larger trade balance remains skewed in India’s favor. According to USTR data, the US goods trade deficit with India was around $45 billion in 2023, driven largely by pharmaceuticals, textiles, and IT services.
At the same time, New Delhi has taken a calibrated approach: offering selective tariff reductions while deepening ties with China and Russia to hedge against aggressive US trade posturing. This “Look East and North” strategy reflects India’s bid to maintain leverage and avoid over-dependence on Washington.
Trump’s comments, while inaccurate in detail, reflect a larger truth: the US has often felt disadvantaged in global trade due to asymmetric tariff regimes. His “America First” doctrine was built on reshaping these imbalances, even if it meant rattling long-standing partners like India.
What remains unanswered is whether Trump — if back in office — would push for another bilateral trade deal or continue using tariffs as leverage. Past negotiations suggested India was willing to make concessions, even exploring zero duty quotas for Harley Davidsons. But with talks stalled, New Delhi’s message is clear: it will not bend easily under tariff threats.
Trump’s Harley Davidson argument may oversimplify, but it underscores a deeper friction in US-India trade ties. As India seeks to project itself as a global manufacturing hub under “Make in India,” it will continue balancing domestic protectionism with the need for global partnerships.
For Washington, India is not just a trade partner but also a strategic counterweight to China. That means tariffs, however heated the rhetoric, are unlikely to derail the broader relationship.
But will Trump consider reducing tariff on India?
Trump responded, “We get along with India very well. But you have to understand, for many years it was a one-sided relationship.” He added, “It’s only changed now after I came along, and because of the power that we have. India was charging us tariffs that were about the highest in the world.”