US President Donald Trump has once again targeted India on business matters. Trump said that India is one of the highest tariff collecting countries in the world.
In Washington, the US President said at the National Republican Congressional Committee Annual Spring Dinner, India imposes 100% tax on American products including motorcycle-Harley Davidson motorcycles, and said that it is not fair to impose wildly in this way. Trump satirized to call India as 'Tariff King'.
Donald Trump reiterated, "I received a call from Prime Minister Narendra Modi. India is one of the highest tax-imposing countries in the world. He charges us 100 percent. When he sends us a motorcycle, we do not charge any fee. But we send them to Harley-Davidson, they charge 100 percent of us. This is not right.'
Indeed, on the economic front these days, bitterness has increased between India and the US. Last month, the GSP (Generalised System of Preference) facility, given to India by the US Trump Administration, was stripped. This means that the Trump Government will impose taxes on the product that India will now sells in the US. Although the Government of India is claiming that this decision of America will not affect the country.
The US started GSP in 1976. Its aim was to increase economic growth in developing countries. Under this, duty-free or nominal tariffs of select goods are allowed to export to other countries in the US.
Significantly, America's trade deficit is increasing. In spite of austere over President Donald Trump's business front, the US trade deficit reached the highest level of 10 years in the last year. It rose 12.5 percent to $ 621 billion in 2018. During this, both imports and exports increased and they reached the highest level so far.
