Washington: Former US President Donald Trump claimed on Thursday that India levied the highest taxes on imports and promised to enact a reciprocal tax if he were to be re-elected.
The United States is set to hold its presidential election on November 5. This year, Trump is running for president as the Republican Party's nominee. From 2017 until 2021, he served as US president.
Trump stated that "reciprocity" will play a significant role in his economic strategy to "make America extraordinarily wealthy again" during his speech on economic policy in Detroit, Scroll.in reported.
“It’s a word that’s very important in my plan because we generally don’t charge tariffs,” Trump said. “I started that process, it was so great, with the vans and the small trucks, etc. We really don’t charge. China will charge us a 200% tariff. Brazil is a big charger. The biggest charger of all is India.”
Trump stated that the United States has a “great relationship” with India and praised Prime Minister Narendra Modi. “But they probably charge as much,” he said.
“I mean, I think they probably charge more than, in many ways, China,” Trump told members of the Detroit Economic Club. “But they do it with a smile. They do it... Sort of a nicer charge. They said, thank you so much for purchasing from India.”
Trump has previously expressed concerns on many occasions regarding India's trade ties with the US. Trump referred to India as a “very big abuser” of their trade ties on September 17. He asserted in August 2023 that India levies unduly high tariffs on goods from the United States and declared that, should he win the election in 2024, he will enact reciprocal taxes.
Trump stated on Thursday that he recalled a conversation with representatives of the American motorcycle brand Harley-Davidson in 2019 and 2020, “I said, how’s business? Good, good. What are the bad countries? Well, India is very tough. And they gave me some others. Why? Tariffs. I said, what are they? And they said like 150%, some massive amount.”
In return for tariff relief, Trump claimed that Harley-Davidson was encouraged to establish a manufacturing plant in India. “They said, if you go there and build your plant, we’re not going to charge you anything,” Trump said. “I said I don’t like that. And I see they went, they [Harley-Davidson] built the plant, and now they do their business with India.”
In February 2019, India reduced the customs charge on imported motorbikes, including Harley-Davidson models, to 50% following President Trump's criticism of it as "unfair" and his threat to raise tariffs on Indian motorcycle imports into the US. At the time, Trump's response was that the rate remained "unacceptable."
Washington withdrew India's classification as a beneficiary developing country under the Generalised System of Preferences Program three months later, citing India's failure to guarantee the US "equitable and reasonable access to its markets." At the time, Trump served as the US president.
If the developing nations fulfil the requirements set down by their Congress, some products may be imported into the US duty-free.