Modi ‘beautiful’ but duty cuts not enough: Trump
WASHINGTON: Calling Prime Minister Narendra Modi a “fantastic” and “beautiful” man, US President Donald Trump on Monday ratcheted up the rhetoric on bilateral trade and said he wasn’t impressed — “Am I supposed to be thrilled?” — by the recent cuts in tariff on Harley-Davidson motorbikes sold in India.
Trump has litigated his case against India’s high import duty on Harley-Davidsons publicly starting with his first address to the US congress last February and his tone has grown sharper since, despite the glowing references to Modi, whom he had earlier called a “great gentleman” in the same context. The Trump administration has been also pressing India to reduce tariff on other goods and remove non-tariff trade barriers.
“Now, the Prime Minister, who I think is a fantastic man, called me the other day,” Trump said at a meeting with state governors at the White House. “He said, ‘We are lowering it (tariff on Harley-Davidson) to 50%.’ I said, ‘Okay, but so far we’re getting nothing.’ So we get nothing, he gets 50 (%), and they think we’re doing — like they’re doing us — a favour. That’s not a favour. And you know what I’m talking about,” Trump said.
He pressed on: “He (Modi) said it so beautifully. He’s a beautiful man. And he said, ‘I just want to inform you that we have reduced it to 75, but we have further reduced it to 50.’ And I said, ‘Huh.’ What do I say? Am I supposed to be thrilled?”
Trump was referring to a phone conversation with Modi on February 8 in which they had discussed range of bilateral issues.
India did indeed levy a 100% tariff on motorcycles (completely built units) larger than 800cc earlier, but the rates have dropped since — first to 60% and 75% for engine capacities less than 800cc and more, respectively. Now, as of earlier this month, it’s down to flat 50% for both categories.
But the US duty on Indian motorbikes sold in the US is 0%, and that’s the point Trump is making. “So they have a motorcycle or a motorbike that comes into our country — the number is zero. We get zero. They get 100%, brought down to 75; brought down, now, to 50. Okay.”
Harley-Davidson India has an annual sale of 3,700, according to reports, but Trump’s claims that Indian motorcycles sell by the “thousands and thousands” in the US has been called an exaggeration — the US is not among major importers of Indian bikes.
On Monday, Trump returned to the February 8 phone conversation to relate to the governors all that he is doing to ensure America gets a fair trade deal around the world. Trump and Modi share a good working relationship, according to officials on both sides, but the American leader is not known to pass up an opportunity to speak his mind, about other world leaders as well, such as Chinese President Xi Jinping, whom he has said he likes and gets along with — called him “unique” at the same meeting with governors.