Trump Threatens Reciprocal Taxes on Indian Imports, Focuses on Harley-Davidson

Former US President Donald Trump has once again brought up the issue of taxes on American products in India, specifically targeting the iconic Harley-Davidson motorcycles. He has threatened to impose reciprocal taxes if he returns to power in the 2024 US presidential elections.

Trump's Previous Stance on India Tariffs:

During his first term as US President, Donald Trump often referred to India as a 'tariff king.' In May 2019, he terminated India's preferential market access, claiming that India didn't provide the US with fair access to its markets.

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Trump's Critique on Indian Tax Rates:

In an interview with Fox Business News, Trump criticized India's tax rates, stating that they were "quite high," exceeding 100 percent in some cases. He specifically mentioned Harley-Davidson motorcycles, highlighting that India imposed tariffs of 100 percent, 150 percent, and even 200 percent on them.

Reciprocal Tax Proposal:

Trump suggested implementing a matching tax system. He noted that while Indian motorbikes could be sold in the US without any tax or tariff, Harley-Davidson faced prohibitive tariffs in India. Trump questioned why Harley-Davidson wasn't doing business in India, attributing it to the high tariffs. He also mentioned a proposal where the US would build a plant in India to avoid these tariffs.

Tariff Concerns Beyond India:

Trump didn't limit his criticism to India alone; he also highlighted Brazil's high tariffs. He expressed frustration that even when India imposed tariffs as high as 200 percent, the US wasn't able to reciprocate with any significant tariffs on Indian products due to the principles of free trade.

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Trump's Current Status:

Currently, Donald Trump faces various court cases and indictments. He is actively involved in the Republican presidential primaries and commands a substantial portion of GOP votes in national polls. However, he has decided to skip the upcoming Republican primary debate for the 2024 cycle.

Trump's comments regarding India's tariffs and his proposal for reciprocal taxes underscore the complex trade dynamics between the US and India. These issues are likely to remain a topic of discussion as the 2024 US presidential elections approach.