United States is not at all happy with the reduction of tariff on American motorcycles in India from 100 percent to 50 percent. They wanted 100 percent reduction of tariff on their motorcycles in the country like what they do with regard to Indian vehicles there.
India of late has reduced import tariffs on American motorcycles to 50 percent after US demand for the same. But what the US really intends to achieve is zero percent tariff on American imports in India.
US President Donald Trump said that though India has reduced its import tariff on American motorcycles from 100 percent to 50 percent, it is still too high and not acceptable to him.
Trump said the United States, under his leadership, is a country that can no longer be fooled. "We're not the foolish country that does so badly. You look at India, very good friend of mine, Prime Minister Narendra Modi, you take a look at what they've done, 100 percent tax on a motorcycle. We charge them nothing," Trump told CBS news in an interview on Monday.
Trump was referring to the import tariff on the Harley Davidson motorcycles, an issue that has been close to his heart and wants India to reduce it to zero.
"So, when Harley sends over there, they have 100 percent tax. When they (India) send in - they make a tremendous number of motorcycles - when they send them in, no tax. I called him. I said it's unacceptable," Trump said, referring to his conversation with Modi.
"He (Modi) reduced it by 50 percent with one phone call. I said it's still unacceptable because it's 50 percent versus nothing. It's still unacceptable. And they're working on it," he said, indicating that the two countries are still in talks to resolve the issue of import tariffs on American motorcycles.