“Reciprocal Tax A Menace To India And China” says Trump

Posted by Shreya Chakravorty
March 10, 2018

NOTE: This post has been self-published by the author. Anyone can write on Youth Ki Awaaz.

United States president Donald Trump on Friday 9th March threatened to impose reciprocal tax on India and China if they do not repose on taxing American imports.

Trump said he will be imposing retaliatory trade tariffs against India.Reiterating a warning he made before while referring to India’s import duties on Harley Davidson motorcycles whereas he has repetitively stated that the US levies zero tax duty or nothing on motorcycles imported from India.

He said, “we are going to be doing a reciprocal tax programme,at some point so that China is going to charge us 25% or if India is going to charge us 75% and we charge them nothing. Let them charge 50, 75 or they are at 25 we are going to be at the same number, we are going to a do a lot of that was unexpected.

He said the time has now come for the imposition of the reciprocal tax in the very first year of his administration. The contentious tariffs that have invited sharp global condemnation will take effect within 15 days. Commerce secretary Rita Teaotia said that though India’s exports of steel and aluminium to the US are limited at present, the tariffs concern India as a matter of principle. “Let’s wait and see the manner in which it is notified and then we will decide what is to be done. 

Referring to a tweet by Tesla chief Elan musk, Mr Trump said China charged 25% duty on American cars whereas it was just 2.5% on import of Chinese cars to US. India reacted cautiously to the threat that commitments by US and India to the World Trade Organisation does not go hand in hand as the former is a developed country while the latter is a developing country therefore it enjoys more facilities.

The Trump administration has time and again insisted that India is resorting to discriminatory trade practices, which have led to a large trade deficit for the US. During a recent discussion with members of Congress, Trump said the decision of the Indian government to reduce the tariff on Harley Davidson motorcycles from 75% to 50% was not enough and asked that it should be reciprocal, as the US imposes “zero tax” on the import of Indian motorcycles.

Indian officials requesting obscurity said the tariff increment by the US administration may face strong criticism at the upcoming mini-ministerial organised by India in New Delhi on 19-20 March.The US will be represented at the deputy US trade representative level while China will be represented by its vice minister of commerce Wang Shouwen.

Trump also stated we are going to have a great relationship, hopefully,, with China, but we have to do something. We are losing with China $500 billion a year,for this has to be taken action upon. Concluding that tariffs should not be a reason to hamper the good political relation that US-India and US-China hold. 

Youth Ki Awaaz is an open platform where anybody can publish. This post does not necessarily represent the platform's views and opinions.