Trump warns of imposing high reciprocal tax on India if re-elected in 2024

Trump warns of imposing high reciprocal tax on India if re-elected in 2024

Washington - Former US President Donald Trump, currently seeking reelection, has once again brought attention to India's imposing high tariffs on specific American products, notably the iconic Harley-Davidson motorcycles. He has warned of retaliatory actions involving reciprocal taxes if he secures a victory in the 2024 elections.

During his initial presidential term, Trump labeled India a "tariff king" and in May 2019, terminated India's preferential market access under the Generalized System of Preferences (GSP) program. He alleged that India had not provided equitable and reasonable market access to the United States. In an interview with Larry Kudlow on Fox Business News, Trump voiced concerns about India's tax rates, which he perceived as excessive.

Trump criticized India's tariffs, particularly focusing on instances such as Harley-Davidson motorcycles. He highlighted the stark contrast between the tariffs faced by Indian motorbikes entering the US market versus those imposed on Harley-Davidson bikes in India. The former president emphasized that the high tariffs on American products made it challenging for businesses to thrive in India.

During the interview, Trump recounted discussions with Indian officials about the tariff disparities. He expressed his frustration with the situation, questioning why the US couldn't impose proportional tariffs in response to India's high tariffs.

Trump's proposal to impose reciprocal taxes involves a strategy of "retribution" or "matching tax," where the US would mirror the tariffs imposed on American goods by India. He argued that if India is charging the US for its products, the US should have the right to reciprocate with similar tariffs.

Despite facing legal challenges and indictments, Trump remains a prominent figure in the Republican presidential primaries. He leads in major national polls, commanding over half of the GOP votes.

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