US President Donald Trump on Tuesday allegedly threatened that his govt. would levy ‘reciprocal tax’ on motorcycles that get imported into US from India. He slammed the tariff imposed by India on Harley-Davidson motorcycles as “prohibitively unfair”.
Talking to US lawmakers about trade, Trump said that the US companies like Harley-Davidson pay unreasonably high tax to get into Indian market whereas they don’t levy any tax on motorcycles that get imported from India. He added that if India doesn’t cut down customs duty on high-end imported motorcycles from US, they would also reciprocate by levying high taxes on Indian imported bikes.
India used to impose 100% tariff on motorcycles larger than 800cc but the rate has since dropped to 75% and 50% now for certain categories of big motorcycles.