Donald Trump desires a 'reciprocal tax' or 'any tax' from India
Washington : The US President Donald Trump on Saturday said that India is a "very high tariff nation" and he desires to put a "reciprocal tax" to cut out taxes India imposes on the products imported from America.
"India is a very high tariff nation. When we send a motorcycle to India, they charge 100 per cent tariff. When India sends a motorcycle to us, we charge nothing. I want a reciprocal tax, at least I want to charge a tax," news agency ANI quoted him as saying the Conservative Political Action Conference.
Last month a news agency had reported that India may lose a vital US trade concession, under which India pays no tariff and worth $5.6 billion of exports to the United States.
A move to withdraw the Generalised System of Preferences (GSP) from India, the world's largest beneficiary of a scheme that has been in force since the 1970s, would be the strongest punitive action against India since President Donald Trump took office in 2017 vowing to reduce the U.S. deficit with large economies.
India and the United States have developed close political and security ties. But bilateral trade, which stood at $126 billion in 2017, is widely seen to be performing at nearly a quarter of its potential.