US President Donald Trump told the media that he managed to lower motorcycle tariffs in India in a negotiation that lasted about two minutes. It gets better. Trump conceded that India’s decision to cut down tariff on motorcycles by half was a fair deal, however, he was unhappy about the high duties imposed on American whisky. While talking at the White House on the Reciprocal Trade Act on January 24, Trump explained to those gathered with examples of non-reciprocal tariff from a number of countries.
"Look at motorcycles as an example. (In) India, it was 100 per cent. I got them down to 50 per cent, just by talking for about two minutes,” he was quoted as saying by media agencies. He soon went on to talk about the high tariff in India on foreign liquor. "India has a very high tariff. They charge a lot of tariffs. You look at whisky... India gets 150 per cent, we get nothing," he said.
In February 2018, India cut down the customs duty on foreign bikes to 50 percent. This action came after Trump called it ‘unfair’ and had also threatened to hike the tariffs on Indian bikes in the US.
According to Trump, the Reciprocal Trade Act will help solve the issue of “trade barriers that make it impossible for us to sell our farm products and our other products.” He hopes to use the act to use a tit-for-tat kind of strategy. "Whatever the tariff for a foreign country is, we place the same tariff on us. What's going to happen, I think, from a practical standpoint, is they won't be charging us tariffs anymore. We'll see. Or we'll charge them a lot. Tremendous amount of money," he said.Read More