October 16, 2024

Trump Proposes Reciprocal Tax on India’s ‘High Tariffs’ in New Voter Pitch

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Former U.S. President Donald Trump, aiming for a second term, promised to introduce a reciprocal tax on India due to its high tariffs on foreign products if he wins the upcoming election. Speaking to the Detroit Economic Club, Trump emphasized that reciprocity is key to making America wealthy again. He accused India of being the “biggest charger” of tariffs, specifically mentioning high taxes on Harley-Davidson motorcycles.

Despite the criticism, Trump praised Indian Prime Minister Narendra Modi, calling him a “great leader” who has united the country. Trump acknowledged that India’s tariffs, which can reach up to 150%, were a challenge for American companies like Harley-Davidson during his first term. He contrasted India’s approach with that of China, saying India imposes its tariffs “with a smile.”

Trump reflected on his conversations with U.S. businesses about trade barriers, learning that India is often considered one of the toughest countries due to its tariffs. He shared that in 2019, he ended India’s designation as a developing nation, which had allowed the country to export many products to the U.S. duty-free. India responded by raising tariffs on several American goods.

Despite trade tensions, the U.S. remains India’s largest trading partner, with $127 billion in bilateral trade last year. Trump’s recent comments come after he praised Modi, calling him both a friend and a strong leader. Trump noted how Modi brought stability to India, jokingly adding that Modi appears kind but is “a total killer” in negotiations.