Trump says India’s tariffs highest, and it’s not fair

NEW DELHI: US President Donald Trump accused India of having the “highest tariff” in the world and credited his administration’s strategy of putting pressure on New Delhi to narrow the trade deficit for goods and services from $30 billion in 2016 to $24 billion.
“India is the highest tariff (nation in the world). When you deal with India, Harley Davidson has to deal with tremendous tariffs when they sell motorcycles.And, when India sends motorcycles to the US, there is virtually no tariff. So, I just say that’s unfair and we are working it out,” Trump told reporters.
In the past too, Trump has been critical of India’s trade policies and high import duties and described it as the “tariff king” as his administration has repeatedly sought to put pressure on lower customs levies.
Indian authorities have, however, defended the import duty, arguing that it is well within the commitment given to the World Trade Organisation (WTO). American authorities have also been critical of the government raising duties in recent years and Trump flagged it as a concern. He credited his administration for forcing India on the backfoot by withdrawing GSP benefits last June. “...it was a form of rent control, if you put it in a different sense.”

The US had postponed the withdrawal of preferential duties until general elections in India got over and since then negotiations to find a solution has intensified. “Now we are talking. We have had great discussions. Now we can’t lose. You know I never lose. Because I want reciprocal. It has to be reciprocal. The US has to be treated fairly. The relationship is outstanding but India has to understand we have had a tremendous deficit for many many years with India. It’s now down to $24 billion. But that is still too high,” Trump said.