In a major development that will not be a welcome move for India’s economy, United States President Donald Trump has threatened that if India and China will not match America’s tariff, then the US will levy a ‘reciprocal tax’ on both the countries. Further speaking on this issue, the US president said that if these countries (India and China) charge them 50% the United States would also charge them equally. “We’re going to be doing a reciprocal tax programme, at some point so that if China is going to charge us 25% or if India is going to charge us 75% and we charge them nothing.” President Trump further added, “they are 50, they are 75 or they are 25, we are going to be doing the same numbers. It’s called reciprocal. It’s a mirror of tags. So they charge us 50, we would charge them 50.”
In the past couple of weeks, US President Donald Trump had been very vocal about the tariff on US companies and have talked openly about other countries are treating US companies. Previously, President Donald Trump while speaking about import duty on Harley-Davidson motorcycles had said that India charges 50% import duty while the United States charges 0% tax on motorcycles imported from India. President Trump had also mentioned that American companies were not being treated fairly by other nations.
US President Donald Trump further speaking about the reciprocal tax programme said that it would ensure “fair trade deals” for the United States. The US President even mentioned that the country was losing $500 billion a year to China for which there was a need to do something. Speaking to reporters, US President Donald Trump said, “China says it’s got 2%, but it sends much more. We’re going to have a great relationship, hopefully, with China, but we have to do something. We’re losing with China USD 500 billion a year. We have to do something.”
Previously, US President Donald Trump had lashed out at India for high import tariff on Harley-Davidson motorcycle, despite New Delhi’s slashed customs duty on imported motorcycles from high brands to 50%. Donald Trump, during a discussion with Congress members over the steel industry, also menaced to surge the tariff on the import of “thousands and thousands” of Indian motorcycles to the US. Recently, the Indian government’s reduced tariffs on motorcycles from 75% to 50%.
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