India Lowers Import Duty on Harley Bikes, Trump Criticizes!
US President Donald Trump has protested against increase in import duty by India of America’s iconic Harley Davidson motorcycles by threatening that he will impose similar duties on imports of motorcycles manufactured in India to United States. During a recent discussion about the nation’s steel industry he said that the Indian government’s decision to reduce tariff from 75% to 50% was not enough. He demanded a reciprocal tax on the motorcycles as United States does not impose any tax on motorbikes from India.
While speaking on the issue Donald Trump also stated that India and several other nations “abuse” their trade relationship with United States and get away with it, therefore there is an urgent need to introduce reciprocal tax. He had previously too spoken about this tax that would make trade with all their partners “fair trade” as it would stop all of them from taking unfair advantage of the large American market.
According to him if America starts imposing taxes on products imported from other nations then it is likely to help local businesses as the products become expensive and America will make money in the bargain. But if this retaliation leads to these trade partners cutting back on their taxes or removing it completely then a similar action will be adopted by America too and there will be a sense of “free trade” in the true sense.
The Central Excise Board has announced a reduction in 800cc motorcycles from Harley Davidson and Triumph that are imported into India as completely built units and reassembled for sale. According to industry experts the import duty rationalization will increase the sales of these motorcycles as they have a great demand here since there are not manufactured in India. The slashed import duty will reduce the sale price of these motorbikes by 20% to 30% and fans are eagerly waiting for the first lot of imports to arrive.