US President Donald Trump made a gaffe by insinuating that India imposes 100% taxes on imports on few goods. He mentioned the import duties levied on Harley-Davidson motorcycles again and again. He threatened to retaliate by increasing import tariff on “thousands and thousands” of Indian motorcycles to the US.
In the G7 summit held in Canada’s Quebec City, Trump targeted various world’s top economies along with a few developing countries by referring to India. He accused that many of the US goods are charged 100% tariff in New Delhi and tried to intimidate by cutting up all kinds of trades with such countries. He stated,
“This isn’t just G7. I mean, we have India, where some of the tariffs are 100 percent. A hundred percent. And we charge nothing. We can’t do that. And so we are talking to many countries,”
His statement might jeopardize the current positive trade with the US, as per the statistics at the moment. For instance, bilateral trade expanded by USD 11 billion last year to more than USD 125 billion, which is a new record.
Trump said while addressing a press conference on Saturday,
“We’re like the piggybank that everybody is robbing”
“We’re talking to all countries. And it’s going to stop. Or we’ll stop trading with them. And that’s a very profitable answer, if we have to do it,” Trump alerted before he left for Singapore from Canada, where he was planned to hold a much-publicized summit with North Korean Leader Kim Jong Un.
Trump’s, ultimate plan is to eliminate all trade duties.
“Ultimately that’s what you want,” he said.
“You want a tariff-free. You want no barriers. And you want no subsidies. Because you have some cases where countries are subsidizing industries and that’s not fair”, US President added
The US wants the market to operate freely. It considers lowering tariff and non-tariff barriers by countries are the solution to any trade dispute.
Now, we are waiting for the final call of the two most significant and powerful countries, that how they are going to sort this issue along with maintaining the base bond with each other.