How did Trump's tariff bomb lead to a drop in GST by coward Modi?

USA is a superpower because of its economy, military and leadership. Most USA Presidents in recent decades were from military background, who joined public service after retirement from the military. The only major exception was President Ronald Reagan in 1980s who came from the Hollywood acting background. Current President Donald Trump is also an exception as he comes from business background.

As a core businessman, Donald Trump understands profit, trade, tariff and business deals. He wants to reduce USA’s persisting trade deficits with leading trade partners like Mexico, China and Canada and that is perfectly ok. During his first term (2016-2020), he multiple times complained about high import tariff imposed by India on Harley-Davidson bike. The reason for this single product focus by Donald Trump could be because some powerful business lobby or a close friend or relative might be lobbying to him to force Indian government to reduce import tariff on Harley-Davidson bike. Donald Trump looked India-USA trade only from Harley-Davidson bike export to India or lack of it.

Donald Trump 2.0 administration (2025-2028) started from the same theme. This time he is much more aggressive. He thinks his core ‘White American’ vote base will support his agenda of imposing hefty reciprocal trade on third world countries to achieve a balanced trade. Hence his second term started with the reciprocal tariffs.

Harley-Davidson bikes are iconic style statement, big, bulky, expensive luxury bikes which gobbles up huge fuel and not suitable for densely populated Indian urban cities. It is suitable only for bike lover and celebrities like Bollywood’s John Abharam and Cricketer Mahender Singh Dhoni. Both of them are self-confessed bike lover. But this cannot be a mainstream product in India due to high fuel cost. Donal Trump is not understanding that because he is obsessed with Harley-Davidson bike. Thus India-USA trade boils down to this product.

As a person from business family, he lacks strategic vision and this will create biggest problem for USA in the future. USA’s global leadership role will start to diminish. Already NATO is under strain as EU and USA differ on funding Ukraine’s war with Russia. The newly emerging QUAD strategic vision for Indo-Pacific to counter rival Ch!na is also losing momentum as Trump ignores QUAD alliance.

For business minded people, who focus trade and business over national security and geopolitical issues, India can only hope to counter Donald Trump by imposing high taxes and tariffs on Donald Trump’s real estate assets in India.

Donald Trump is family business focused President of USA

Modi government 3.0 was compelled to bring GST tax reform called GST 2.0 in September 2025 due to Donald Trump tariffs even it was planned long back. Broadly GST 2.0 simplified four tax slabs (0%, 5%, 12%, 18% and 28%) to two slabs (0%, 5% and 18%) for general goods. The new GST 2.0 also has a special high tax slab called ‘sin tax’ which is 40%. All addiction and sin items like tobacco, pan masala, guthka, wine and hard liquors, carbonated drinks will be placed in this sin tax category. Also, luxury items like super-bike with more than 350cc engine, private jets and BMW cars etc. were placed under this category. Clearly, all Harley-Davidson bikes will fall under this category and will have high GST taxes.

With this, Indian PM Modi can reduce import tariff on Harley-Davidson bikes and satisfy Donald Trump’s ego without changing much ground reality for this product in India. But the positive side of GST 2.0 is that most common household items taxes were revised downward. This is the third major incentive given to boost middle class spending and consumer led economic growth after reducing corporate taxes and increasing nil income tax upto Rs 12 lakhs per annum. PM Modi can create opportunity from the crisis and GST 2.0 after Trump tariff is an example. Buying cheap Russian oil and making profit from it was another case of opportunity from the crisis. PM Modi is not a coward but will be remembered as a person who challenged American hegemony to protect national interest. Congress leadership of UPA, on the other hand, could not take on the problematic neighbour Pakistan.

Picture source: Google / Respective rightful owner

No Easy Ride for U.S.-India Trade as Trump Focuses on Harley

India and the United States face deadlines in the coming days to decide disputes over trade and oil. The president is most interested in motorcycle tariffs.

https://www.nytimes.com/2018/11/01/business/us-india-trade-harley-davidson.html

Battle against India is personal for Trump, his aide Navarro lets it slip

Peter Navarro, President Trump's senior counsellor on trade, has given it away that the record-high tariffs against India are not just over Russian oil or trade. With his language and images in particular, Navarro has revealed that Trump and his cronies are making it personal against PM Modi. The attack is directed at India's civilisational roots.

https://www.indiatoday.in/india/story/donald-trump-tariff-india-aide-peter-navarro-post-social-media-sanctions-personal-attack-swami-vivekananda-kanyakumari-2778787-2025-08-29

Trump’s personal rapport with Modi ‘gone now’, says former US NSA Bolton

Bolton's remarks came against the backdrop of possibly the worst phase in India-US relations in over two decades, with the strain exacerbated by Trump's tariff policy and constant criticism of New Delhi by his administration.

https://indianexpress.com/article/world/trumps-personal-rapport-with-modi-gone-now-says-former-us-nsa-bolton-10230809/

"Shredded Decades Of Efforts": Ex-Trump Advisor's Dig On Tariff Policy

Ex-US NSA John Bolton has sharply criticised President Trump's tariff policy, asserting that it has "shredded" decades of Western efforts to align India away from its Cold War ties with the Soviet Union and address the growing threat from China.