Donald Trump is at it again, and this time, his target is a familiar one: India. The former U.S. President recently renewed his accusations of “one-sided” trade, claiming India exploits America with high tariffs and an unfair business environment. He’s been using a 50% tariff on Indian imports as his go-to solution, arguing that it’s the only way to level the playing field.
But as with many political sound bites, a quick look at the facts tells a different story—one of a robust and increasingly crucial relationship that goes way beyond trade disputes.
The Harley-Davidson Myth: Tariffs vs. Reality 🏍️
Trump loves to bring up Harley-Davidson as his prime example. He claims the iconic motorcycle company couldn’t sell in India because of a “200% tariff,” which he says forced them to set up a local plant.
The real story? Harley-Davidson’s struggle had very little to do with tariffs. While high-end bikes did face significant duties (around 50-100%, not the “200%” Trump often cites), India actually lowered these tariffs to 50% under his own presidency in 2018.
Ultimately, the company’s 2020 exit from India wasn’t a result of a trade war but a simple market mismatch. India is the world’s largest two-wheeler market, but it’s dominated by small, affordable bikes from brands like Hero and Bajaj. Harley’s bikes, with their hefty price tags (ranging from Rs 5 lakh to Rs 50 lakh), were simply too expensive for the average Indian buyer. When Harley set up its plant in 2011, it sold fewer than 3,000 units a year—a tiny fraction of India’s 20-million-bike market. The company left because of low demand, not high tariffs.
The “One-Sided” Trade Claim: Facts on the Ground
Trump’s second claim is that India “poured everything into the US” while “America sent nothing back.”
The truth is very different. U.S. exports to India aren’t just robust, they’re growing fast. In 2023, U.S. exports to India exceeded $70 billion, with key shipments including oil, military hardware, aircraft, and technology. India is one of the biggest buyers of American defense equipment, snapping up Apache helicopters, Boeing aircraft, and GE engines. Beyond that, American giants like Apple, Microsoft, ExxonMobil, and GE have expanded their presence in India, bringing in billions of dollars in investments and revenue.
And as for India “flooding” the U.S. market? India’s share of total U.S. imports is just 2.5%, while China’s is a massive 17%. India is an emerging supplier, not a dominant force overwhelming the American market.
Beyond the Numbers: A Relationship That Runs Deep 🤝
The tariff debate completely misses the big picture of the U.S.-India relationship. It’s a strategic partnership that spans far more than just goods and services.
- Students & Education: Over 250,000 Indian students in the U.S. contribute nearly $25 billion to the American economy every year.
- Tech & Services: U.S. tech giants like Google, Amazon, and Meta pull in $15–20 billion annually from India’s booming digital market.
- Defense & Security: India is a crucial defense partner, a key part of the QUAD framework and the U.S.’s Indo-Pacific strategy.
- Diaspora: The 4.5 million-strong Indian-American community is a powerful bridge, strengthening people-to-people ties.
Many experts, including Congressman Ro Khanna, fear that Trump’s rhetoric and policies are putting this crucial relationship at risk. Khanna pointed out on X that the 50% tariff on India is “higher than any other country other than Brazil” and that it hurts both nations while potentially pushing India closer to China and Russia.
Ultimately, the U.S.-India partnership is a multi-dimensional, strategic bond built over decades. It’s an alliance that Trump’s “one-sided” trade narrative fails to grasp, and one that many worry he could dismantle.