Former US President Donald Trump was seen again rising with the issue of taxes on specific American goods being imposed by India, particularly targeting the well-known Harley-Davidson motorcycles tariff issue. He has again claimed his previous statement which was openly declared in a public conference in his previous tenure but he again claims that if he regains power in the upcoming 2024 US presidential elections, he intends to impose reciprocating taxes in response.
In his initial term as president, Trump famously on public stage and in interviews referred to India as a “tariff king.” In May 2019, he took the step of ending India’s favoured access to US markets under the Generalised System of Preferences (GSP).
This move was prompted by claims of unfair and unreasonable barriers to trade for American products entering the Indian market.
Donald Trump in an interview with Larry Kudlow on Fox Business News, criticized the tax rates applied by India, asserting that they were notably high considerably.
He mentioned the example of tariff issues faced by Harley-Davidson motorcycles, highlighting that India had imposed tariffs as high as 100 percent, 150 percent, and even 200 percent on these imported bikes. In contrast, he noted, Indian-made motorcycles could enter the US market without facing such steep tariffs.
Trump further expressed frustration that the high tariffs had deterred the sale of American-made Harleys in India, urging the country to lower its trade barriers.
Trump also explained his reasoning for considering reciprocal taxes. He asked why, if India charged such high tariffs on US products, the US couldn’t reciprocate with its own tariffs. He labeled this concept as “retribution” and clarified that it was about fair trade practices.
Reciprocal taxes function much like tariffs. They involve charging duties on imports from a country that imposes similar charges on US exports. This practice aims to create a balanced trade environment.
Interestingly, similar reciprocal tax agreements exist within the United States among its states. These agreements permit residents to work in one state without having their income taxed by the state of employment. Instead, their earnings are taxed according to the tax rules of their home state.
As of now, Donald Trump is navigating a series of legal cases and accusations. Despite this, he remains a prominent figure in the Republican presidential primaries, commanding over half of the GOP votes according to national polls. However, he has officially announced his decision to forego participation in the upcoming Republican primary debate, the first of the 2024 election cycle.