India not doing any favour to US by slashing import duties on imported motorcycles: Trump
, ET Bureau|
Feb 28, 2018, 09.04 AM IST
NEW DELHI: United States President Donald Trump has for the second time in a month raised the issue of high import duty charged by India on high-end motorcycles such as those made by Harley-Davidson and said that the US wants fair and reciprocal trade deals, highlighting continuing differences between the two countries on tariffs.
Addressing a gathering of governors of states at the White House on Monday, Trump made light of India’s move to slash the import duty to 50%. Referring to his recent conversation with Prime Minister Narendra Modi, he said the “fantastic man” had informed him that India had reduced tariffs on imported motorcycles but added that the US was “getting nothing”.
The US President’s comments assume significance, coming as they do ahead of the World Trade Organisation mini-ministerial to be held in Delhi. Experts said the Trump administration has a strong stand vis-a-vis all countries that are contributing to its increasing trade deficit.
ET has learnt that differences between India and the US have sharpened since the Narendra Modi government raised duties on certain imported goods in the budget for 2018-19 presented on February 1. US officials as well as companies have approached the Modi government during this period, according to people aware of the matter. They said the US as well as Germany have raised concerns over budget proposals to increase duties on certain items.
On Monday, Trump said: “When they (Harley-Davidson) send a motorcycle to India, as an example, they have to pay 100 per cent tax – 100 per cent. Now, the Prime Minister, who I think is a fantastic man, called me the other day and said we are lowering it to 50 per cent. I said okay, but so far we’re getting nothing. So we get nothing. He gets 50 (per cent), and they think we’re doing — like they’re doing us a favour. That’s not a favour.”
“I wasn’t sure – he said it so beautifully. He’s a beautiful man. And he said, ‘I just want to inform you that we have reduced it to 75, but we have further reduced it to 50.’ And I said, huh. What do I say? Am I supposed to be thrilled? And that’s not good for you people, especially as governors. It’s just not reright. And we have many deals like that,” he said.
Trump said the US gets “zero” when it buys an Indian motorcycle. “So when they have a motorbike – a big number, by the way – they have a company that does a lot of business. They have a motorcycle or a motorbike that comes into our country – the number is zero. We get zero. They get 100 per cent, brought down to 75; brought down, now, to 50. Okay,” he said.
“It (Harley-Davidson) is a great company. When I spoke with your chairman or the president of Harley, they weren’t even asking for it because they’ve been ripped off with trade so long that they were surprised that I brought it up. I’m the one that’s pushing it more than they are, but it’s unfair. And India sells us a lot of motorbikes,” he said.
Addressing a gathering of governors of states at the White House on Monday, Trump made light of India’s move to slash the import duty to 50%. Referring to his recent conversation with Prime Minister Narendra Modi, he said the “fantastic man” had informed him that India had reduced tariffs on imported motorcycles but added that the US was “getting nothing”.
The US President’s comments assume significance, coming as they do ahead of the World Trade Organisation mini-ministerial to be held in Delhi. Experts said the Trump administration has a strong stand vis-a-vis all countries that are contributing to its increasing trade deficit.
ET has learnt that differences between India and the US have sharpened since the Narendra Modi government raised duties on certain imported goods in the budget for 2018-19 presented on February 1. US officials as well as companies have approached the Modi government during this period, according to people aware of the matter. They said the US as well as Germany have raised concerns over budget proposals to increase duties on certain items.
On Monday, Trump said: “When they (Harley-Davidson) send a motorcycle to India, as an example, they have to pay 100 per cent tax – 100 per cent. Now, the Prime Minister, who I think is a fantastic man, called me the other day and said we are lowering it to 50 per cent. I said okay, but so far we’re getting nothing. So we get nothing. He gets 50 (per cent), and they think we’re doing — like they’re doing us a favour. That’s not a favour.”
“I wasn’t sure – he said it so beautifully. He’s a beautiful man. And he said, ‘I just want to inform you that we have reduced it to 75, but we have further reduced it to 50.’ And I said, huh. What do I say? Am I supposed to be thrilled? And that’s not good for you people, especially as governors. It’s just not reright. And we have many deals like that,” he said.
Trump said the US gets “zero” when it buys an Indian motorcycle. “So when they have a motorbike – a big number, by the way – they have a company that does a lot of business. They have a motorcycle or a motorbike that comes into our country – the number is zero. We get zero. They get 100 per cent, brought down to 75; brought down, now, to 50. Okay,” he said.
“It (Harley-Davidson) is a great company. When I spoke with your chairman or the president of Harley, they weren’t even asking for it because they’ve been ripped off with trade so long that they were surprised that I brought it up. I’m the one that’s pushing it more than they are, but it’s unfair. And India sells us a lot of motorbikes,” he said.
