New Delhi (Agency): Former US President Donald Trump, who is seeking a return to office in the 2024 presidential elections, has reignited the issue of high taxes by India on specific American products, particularly Harley-Davidson motorcycles. He has threatened to impose a reciprocal tax on India if voted back into power.
During his tenure as the US president, Trump labeled India as a “tariff king” and in May 2019, terminated India’s Generalised System of Preferences (GSP) access to the United States, alleging that India had not provided “equitable and reasonable access to its markets.”
In an interview with Larry Kudlow of Fox Business News, Trump sharply criticized India’s tax rates, which he claims are excessively high.
Trump stated: “The other thing I want to have is a matching tax where, if India charges us — India is very big with tariffs. I mean, I saw it with Harley-Davidson. I was saying, how do you do in a place like India? Oh, no good sir. Why? They have 100 per cent and 150 per cent and 200 per cent tariffs.” He expressed his frustration with the high tariffs, particularly on Harley-Davidson motorcycles, while Indian motorbikes could be sold in the US with no tax or tariff.
He further elaborated on the situation, explaining how India encourages foreign companies to set up plants within the country to avoid tariffs. Trump’s frustration with the situation was evident, and he emphasized the need for what he termed “retribution” or a matching tax, stating, “If they are charging us, we charge them.”
The topic of tariffs and trade relations with India was a recurring theme during Trump’s presidency. This recent statement reflects his consistent stance on seeking more balanced trade relationships with other nations.
The former president, currently facing various court cases and indictments, is leading the Republican presidential primaries. Major national polls indicate that he accounts for more than half of the GOP votes.
Trump’s pledge to impose reciprocal taxes on India if elected in 2024 could add a new dimension to the bilateral relationship between the two countries. It highlights the underlying tension in trade relations and signals potential policy changes should Trump return to the White House. The statement may also impact ongoing trade negotiations and discussions, making it a significant point of consideration for both nations’ trade and foreign policy strategists.
