Donald Trump slams India Over Import Tariffs

Donald Trump slams India Over Import Tariffs

PTI reported that imported motorcycles from high-end brands, including Harley Davidson and Triumph, are set to get cheaper as the government slashed customs duty to 50 per cent. He slammed the tariff imposed by India on Harley-Davidson motorcycles as "prohibitively unfair".

The Indian government's recent decision to reduce the tariff on high-end motorcycles from 75% to 50% was not enough, the USA president said and sought "zero tax" on the import of motorcycles, since the U.S does not impose any tariff on motorcycles from India.

New Delhi has cut customs duty on high-end imported motorcycles to 50%.

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 was called an "exaggeration perhaps" by India-US trade watchers.

Explaining the concept of reciprocal tax as a system of fair trade, he said, "either we'll collect the same that they're (exporting countries) collecting, or, probably, what happens is they'll end up not charging a tax and we won't have a tax".

Earlier, imported motorcycles with an engine capacity of 800cc or less used to attract a customs duty of 60 per cent on the price of the bike, while for those with a capacity of 800cc or more, it was 75 per cent. I'm not blaming India. "I won't mention the fact that it happens to be India, in this case", the USA president said. I think it s great that they can get away with it. I don't know why people allowed them to get away with it. You know what our tax is?

This is not the first time when India's customs duty on high-end motorcycles facing flak from the US. Longbow Research cut shares of Harley-Davidson from a "neutral" rating to an "underperform" rating in a report on Wednesday, January 3rd. Past year in March, White House National Trade Council Peter Navarro wrote to the Wall Street Journal, saying: "If India agrees to lower its tariffs on Harley Davidson motorcycles, Indian consumers will buy more Harleys and save less while Harley will sell more Harleys and invest more". But there's an example that's very unfair.

Pitching for a "reciprocal tax" on the countries, that Trump said, abuse their trade relationships with the United States, he said, "So, I say, we should have reciprocal taxes for a case like that". "Truly fair and reciprocal trade between the United States and its trading partners, rather than the perpetual turn of the screw we receive now, will lead to a thousand similar kinds of adjustments as our bilateral trade deficits fall and savings and investment patterns adjust", Navarro had said in the letter. Earlier, the duty on pre-assembled parts was 30 per cent.

Indian industry experts said the import duty rates have been rationalised for these motorcycles as it has been an industry demand for long and such high-end bikes are not manufactured in India now.