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Trump slams India for high import tariffs on Harley-Davidson

Press Trust of India  |  Washington 

today criticised for imp\Ro sing high import duty on the iconic motorcycles and threatened to increase the import on "thousands and thousands" of Indian motorcycles to the US.

During a discussion with members of the on the steel industry, Trump said the recent decision of the to reduce the from 75 per cent to 50 per cent was not enough and asked that it should be reciprocal, as the US imposes "zero tax" on the import of motorcycles.

"We have so many countries where we made a product, they make a product, they pay a tremendous we pay a tremendous tax to get into their countries motorcycles, Harley Davidson it goes into a certain country. I wont mention the fact that it happens to be India, in this case," the US said amidst laughter from the audience.

Trump also indirectly referred to the recent conversation he had with in this regard.

"And a great gentleman called me from and he said, we have just reduced the on motorcycles, reduced it down to 50 per cent from 75, and even 100 per cent," Trump said, in an apparent reference to his last week's conversation with Modi.

"..If you are Harley Davidson, you have 50 to 75 per cent tax, tariff to get your motorcycle, your product in. And yet they sell thousands and thousands of motorcycles, which a lot of people dont know, from into the You know what our tax is? Nothing," he told the lawmakers and his Cabinet colleagues.

Trump once again pitched for a "reciprocal tax" on countries that he says "abuse" their trade relationships with the US.

"So I say we should have reciprocal taxes for a case like that. Im not blaming India. I think its great that they can get away with it. I dont know why people allowed them to get away with it. But theres an example thats very unfair. And I think we should have a reciprocal tax," the US said.

Trump has floated the idea of a reciprocal tax in the past, promising to slap it on countries, including allies, that take advantage of the and its huge market.

"That's called fair trade. It's called free trade. Because ultimately, what's going to happen -- either we'll collect the same that they're collecting, or, probably, what happens is they'll end up not charging a tax and we won't have a tax. And that becomes free trade," Trump said.

Imported motorcycles from high-end brands, including Harley Davidson and Triumph, are set to get cheaper as the government slashed customs duty to 50 per cent.

Earlier, import of motorcycles with engine capacity of 800cc or less used to attract 60 per cent duty, while those with capacity of 800cc or more attracted 75 per cent duty.

The (CBEC), through a notification on February 12, has slashed the duty on both these variants of motorcycles imported as completely built units (CBU) to 50 per cent.

Indian industry experts said the import duty rates have been rationalised for these motorcycles as it has been an industry demand for long and such high-end bikes are not manufactured in India currently.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 14 2018. 12:50 IST