US President <a href="http://www.wionews.com/world/indias-high-tariff-on-harley-davidson-motorcycle-unfair-says-trump-32799">Donald Trump </a>on Saturday (local time) accused India of being a “high tariff nation” and threatened to impose “<a href="http://www.wionews.com/world/trump-threatens-india-china-with-reciprocal-tax-35261">a reciprocal tax</a>” to match the heavy duties that New Delhi imposes on goods imported from the United States.

Addressing the last day of a four-day annual Conservative Political Action Conference (CPAC) in Maryland, the US President said, “India is a very high tariff nation. When we send a motorcycle to India, they charge 100 per cent tariff. When India sends a motorcycle to us, we charge nothing. I want a reciprocal tax, at least I want to charge a tax.”

A reciprocal tax is a form of tariff applied to imports from other countries that charge a similar duty on goods exported by the US President Trump has repeatedly called out India for its high tariffs.

“We cannot allow a country to charge 100 per cent and we get nothing for the same exact product. For one thing, they don’t respect us. They think we are stupid,” Trump said.

“But let me tell you something. The world respects our country. They respect us,” the President added.

Indian Prime Minister Narendra Modi, many times, has advocated foreign investments in the country as a part of his ‘Make in India’ campaign to transform India into a manufacturing hub and generate employment to the youth.

However, President Trump has pressed US manufacturing companies to return home as part of his ‘Make America Great Again’ campaign.

In a major disciplinary action against India’s trade and investment policies, Washington on February 6, considered to withdraw the policy of zero tariffs on Indian exports to the US.

The Generalised System of Preferences (GSP), under which India enjoys tariff concession costing to USD 5.6 billion of exports to the US, has been the world’s largest beneficiary of a scheme that has been in force since the 1970s.

The move to withdraw the GSP program marks a draconian action taken by Trump-led US government to reduce the US deficit with large economies.

US President Donald Trump on Saturday (local time) accused India of being a “high tariff nation” and threatened to impose “a reciprocal tax” to match the heavy duties that New Delhi imposes on goods imported from the United States.

US President Donald Trump on Saturday (local time) accused India of being a “high tariff nation” and threatened to impose “a reciprocal tax” to match the heavy duties that New Delhi imposes on goods imported from the United States. Addressing the last day of a four-day annual Conservative Political Action Conference (CPAC) in Maryland, the US President said, “India is a very high tariff nation. When we send a motorcycle to India, they charge 100 per cent tariff. When India sends a motorcycle to us, we charge nothing. I want a reciprocal tax, at least I want to charge a tax.” A reciprocal tax is a form of tariff applied to imports from other countries that charge a similar duty on goods exported by the US President Trump has repeatedly called out India for its high tariffs. “We cannot allow a country to charge 100 per cent and we get nothing for the same exact product. For one thing, they don’t respect us. They think we are stupid,” Trump said. “But let me tell you something. The world respects our country. They respect us,” the President added. Indian Prime Minister Narendra Modi, many times, has advocated foreign investments in the country as a part of his ‘Make in India’ campaign to transform India into a manufacturing hub and generate employment to the youth. However, President Trump has pressed US manufacturing companies to return home as part of his ‘Make America Great Again’ campaign. In a major disciplinary action against India’s trade and investment policies, Washington on February 6, considered to withdraw the policy of zero tariffs on Indian exports to the US. The Generalised System of Preferences (GSP), under which India enjoys tariff concession costing to USD 5.6 billion of exports to the US, has been the world’s largest beneficiary of a scheme that has been in force since the 1970s. The move to withdraw the GSP program marks a draconian action taken by Trump-led US government to reduce the US deficit with large economies.

Want 'reciprocal tax' on India to match tariffs on US exports, says Donald Trump

U.S. President Donald Trump said on Monday he would push for a &quot;reciprocal tax&quot; against countries, including U.S. allies, that levy tariffs on American products, but officials did not provide details on how such a tax would be structured or what goods it would apply to.

During his populist 2016 presidential campaign, Republican Trump railed at countries that had trade surpluses &quot;taking advantage of the United States&quot; and he revisited the theme on Monday.

&quot;We cannot continue to let people come into our country and rob us blind and charge us tremendous tariffs and taxes and we charge them nothing,&quot; Trump told reporters at a White House event to announce a proposed infrastructure plan.

The United States loses &quot;vast amounts of money with China and Japan and South Korea and so many other countries ... It`s a little tough for them because they`ve gotten away with murder for 25 years. But we`re going to be changing policy,&quot; he said.

Trump said his administration will impose a &quot;reciprocal tax&quot; to charge other countries - &quot;some of them are so-called allies but they`re not allies on trade.&quot;

He did not specify how such a tax would be structured, or whether he meant that U.S. tariff rates should be raised to equal to those charged by other major trading partners. Administration officials were not immediately able to elaborate on the president`s comments.

Trump cited motorcycle maker Harley-Davidson as an example of the problem of unfair trade. Harley is building a factory in Thailand, partly because its U.S.-built bikes face a 60 percent tariff there.

The United States has pledged to the World Trade Organization a relatively low, 3.5 percent applied tariff rate, compared to 9.9 percent for China and 5.2 percent for the European Union. For some products, the gap is much wider, such as in passenger vehicles, where the United States charges 2.5 percent tariffs, versus 25 percent in China and 10 percent in the EU.

It was also unclear whether Trump was reviving the idea of a border adjustment tax, an idea rejected by congressional Republicans in last year`s tax reform effort.

Retailers and some import-dependent industries strongly opposed the plan for a 20 percent tax on imports aimed at offsetting the value-added tax refunds that some countries grant to their exporters. The National Retail Federation at the time called it a &quot;bad tax&quot; that would &quot;drive up the prices of countless products Americans use every day.&quot;

Trump asked Commerce Secretary Wilbur Ross if he agreed with the idea of a reciprocal tax during the infrastructure event.

Ross said, &quot;sure,&quot; and proceeded to say that the United States for too long had offered trade concessions to other countries that were no longer needed. 
&quot;Well, we gave away so much unilaterally that we really have to claw it back,&quot; Ross added.

Officials did not provide details on how such a tax would be structured

U.S. President Donald Trump said on Monday he would push for a "reciprocal tax" against countries, including U.S. allies, that levy tariffs on American products, but officials did not provide details on how such a tax would be structured or what goods it would apply to. During his populist 2016 presidential campaign, Republican Trump railed at countries that had trade surpluses "taking advantage of the United States" and he revisited the theme on Monday. "We cannot continue to let people come into our country and rob us blind and charge us tremendous tariffs and taxes and we charge them nothing," Trump told reporters at a White House event to announce a proposed infrastructure plan. The United States loses "vast amounts of money with China and Japan and South Korea and so many other countries ... It`s a little tough for them because they`ve gotten away with murder for 25 years. But we`re going to be changing policy," he said. Trump said his administration will impose a "reciprocal tax" to charge other countries - "some of them are so-called allies but they`re not allies on trade." He did not specify how such a tax would be structured, or whether he meant that U.S. tariff rates should be raised to equal to those charged by other major trading partners. Administration officials were not immediately able to elaborate on the president`s comments. Trump cited motorcycle maker Harley-Davidson as an example of the problem of unfair trade. Harley is building a factory in Thailand, partly because its U.S.-built bikes face a 60 percent tariff there. The United States has pledged to the World Trade Organization a relatively low, 3.5 percent applied tariff rate, compared to 9.9 percent for China and 5.2 percent for the European Union. For some products, the gap is much wider, such as in passenger vehicles, where the United States charges 2.5 percent tariffs, versus 25 percent in China and 10 percent in the EU. It was also unclear whether Trump was reviving the idea of a border adjustment tax, an idea rejected by congressional Republicans in last year`s tax reform effort. Retailers and some import-dependent industries strongly opposed the plan for a 20 percent tax on imports aimed at offsetting the value-added tax refunds that some countries grant to their exporters. The National Retail Federation at the time called it a "bad tax" that would "drive up the prices of countless products Americans use every day." Trump asked Commerce Secretary Wilbur Ross if he agreed with the idea of a reciprocal tax during the infrastructure event. Ross said, "sure," and proceeded to say that the United States for too long had offered trade concessions to other countries that were no longer needed. "Well, we gave away so much unilaterally that we really have to claw it back," Ross added.

US to push for 'reciprocal tax' on trade partners

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