US President Donald Trump, in a recent interview, said that what India charges the US for the products it sends for sale is highly unacceptable. He said that despite charging nothing on the Indian motorcycles that are sold in the US market, India has been fooling America; and he will not be fooled.
“We’re not the foolish country that does so badly. You look at India, very good friend of mine, Prime Minister (Narendra) Modi, you take a look at what they’ve done, 100% tax on a motorcycle. We charge them nothing”
Trump said, India’s taxation on the US vehicle brand Harley Davidson (which was 100%) was reduced to 50% after he phone called PM Narendra Modi.
“So, when Harley sends over there, they have 100% tax. When they (India) send in — they make a tremendous number of motorcycles — when they send them in, no tax. I called him. I said it’s unacceptable. He (Modi) reduced it by 50% with one phone call. I said it’s still unacceptable because it’s 50% versus nothing. It’s still unacceptable. And they’re working on it”
Trump seemed to brag about his power and he cited the wealth America possesses while answering to reporters about it.
It must be noted that early on early June 2019 that, USA mentioned that from 5th of June India would be removed from USA’s Generalized System of Privileges (GSP) Scheme which allowed India to export 3000 products to US tax-free. USA expected in return to lower some trade certification. Since India didn’t do as expected, the US-GOV had asked, this removal from GSP by Donald Trump took place. He said “I have determined that India has not assured the US that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019,” Trump said.
However India wishes to maintain a cordial relationship with America and has said it will strive to be on good terms.