US President Donald Trump, on Friday, vowed that he will impose reciprocal tariffs on other countries including India, asserting that he will charge the same tariffs as these countries impose on American goods.
He said, “We will soon impose reciprocal tariffs—they charge us, we charge them. Whatever a company or a country, such as India or China, charges, we want to be fair; hence, reciprocal. We have never done that. We were getting ready to do it until COVID hit”.
These comments come following Trump met Indian Prime Minister Narendra Modi last week where he said India’ has “the highest tariffs” and “it is a hard place to do business”. Upon receiving PM Modi at the White House, Trump said, “I am thrilled to welcome PM Modi at the White House. We spend a lot of time here and also in India. We travelled to your beautiful country 5 years ago… It was an incredible period of time. There is a special bond between the US and India – the world’s oldest and largest democracies in the world. Today, the PM and I are announcing the framework to strengthen the ties further”.
Trump addressed the issue of reciprocal tariffs, pointing out India’s past trade policies and using Harley-Davidson motorcycles as an example. He explained how American companies were forced to establish manufacturing units abroad due to high import duties.
“India has traditionally been among the top countries charging significant tariffs. While a few smaller nations have higher rates, India’s tariffs are particularly steep. I recall when Harley-Davidson couldn’t sell their motorcycles in India because the taxes and tariffs were so high, forcing the company to build manufacturing units there,” said Trump.
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