On a meeting held on Thursday with Republican lawmakers and his officials on the reciprocal Trade act, US President Donald Trump talked about the unfairness about the tariffs on several items when they are imported into the US and exported by it to other countries.
While talking about the same, he gave an example of India which imposes 150% import duty on American Whiskey. He said, “India, as an example, has a 150 percent – hard to believe – tariff on whiskey. They make whiskey, and they sell it to us. We charge them zero. We sell it to them, they charge us 150 per cent. So I would say, other than that, it’s a very fair deal. Okay?”
He then also pointed about the import duty that was imposed earlier on Harley-Davidson motorbikes. Earlier it was 100% but last year, in February, India slashed the customs duty on imported motorcycles. The President said, “Look at motorcycles as an example. In India, it was 100%. I got them down to 50%, just by talking for about two minutes. It’s still 50% vs 2.4% (on imported motorcycles to the US). Again, other than that, it’s a very fair deal,”
During his interaction with the lawmakers, he argued that the Reciprocal Trade Act would give US workers a fair and level playing field against other countries. Mr Trump believes that many countries have taken advantage of the United States. The Reciprocal Trade Act will allow him to take into account non-tariff barriers while determining such tariffs. He aims to place the equal tariff on the country as they place on the US. Trump said, “Whatever the tariff for a foreign country is, we place the same tariff on us.”
He stated, “They charge us tariffs and taxes, the likes of which nobody has any understanding. They are so high and so unfair! They also have barriers where we can’t go in. They have trade barriers that make it impossible for us to sell our farm products and our other products.”
Showing his anger towards the same, he said, “Whether they think we’re very nice or not so smart, they’ve been doing it for many, many years and we want to end it. Many of these are friends, many of these are allies… but, sometimes, allies take advantage of us even more so than our non-allies.”
Trump, however, did not mention about raising the tariff on Indian whiskey imported into the US. He instead hopes that the country will slash down the import duty on American whiskey. He said, “What’s going to happen, I think, from a practical standpoint, is they won’t be charging us tariffs anymore. We’ll see. Or we’ll charge them a lot. Tremendous amount of money.”
However, the Reciprocal Trade Act proposed by the US President is opposed by many in his own party because they believe that the act would restrict trade.
In October last year, Trump said that he has great relations with Indian Prime Minister Narendra Modi and that he will reduce tariffs on US Imports.
Well, we now have to see how India reacts to it. Will India reduce the import duty on American whiskey or will it have to pay increased customs while importing the Indian whiskey?
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