U.S. ‘Getting Nothing’ from India’s Lowered Import Duty on American Bikes: Trump

For the second time in a month, United States President Donald Trump complained about import duties in India on high-end American motorcycles like Harley-Davidson. He said on Feb. 26 that the United States was “getting nothing” even though the Indian government reduced the customs duty on expensive imported motorcycles to 50 per cent.

The United States doesn’t tax Indian motorcycles, Trump said during his speech at the White House Business Session with Governors.

“When they (Harley-Davidson) send a motorcycle to India, as an example, they have to pay 100 per cent tax — 100 per cent,” Trump said. “Now, the prime minister (Narendra Modi), who I think is a fantastic man, called me the other day and said we are lowering it to 50 per cent. I said okay, but so far we’re getting nothing. So we get nothing. He gets 50 (per cent), and they think we’re doing — like they’re doing us a favor. That’s not a favor,” he added.

“I wasn’t sure — he said it so beautifully. He’s a beautiful man. And he said, ‘I just want to inform you that we have reduced it to 75, but we have further reduced it to 50’. And I said, huh. What do I say? Am I supposed to be thrilled? And that’s not good for you people, especially as governors. It’s just not right. And we have many deals like that,” Trump said.

“So when they have a motorbike — a big number, by the way — they have a company that does a lot of business. They have a motorcycle or a motorbike that comes into our country — the number is zero. We get zero. They get 100 per cent, brought down to 75; brought down, now, to 50. Okay,” Trump said.

“It’s a great company. When I spoke with your chairman or the president of Harley, they weren’t even asking for it because they’ve been ripped off with trade so long that they were surprised that I brought it up. I’m the one that’s pushing it more than they are, but it’s unfair. And India sells us a lot of motorbikes,” Trump said.

Trump had threatened India earlier this month with a reciprocal tax despite India’s decision to reduce import duty to 50 per cent in 2018. In 2017, the tax was 75 per cent.

Trump had previously said that India exports “thousands and thousands” of motorcycles to the United States. However, in 2016-17, India exported 2,440 bikes to America, which included 150 bikes above 500 cc engine capacity, worth only $5.98 million, the  Economic Times reported citing Ministry of Commerce data. From April to November 2017, a total of 4,480 units were exported to the United States, of which just 80 bikes were above 500 cc, it added.

On Feb. 23, Trump also criticized India and China for benefiting from the Paris Climate Agreement, which he said was a “disaster” and “terrible” for American jobs. He said that the deal would lead to loss of trillions of dollars, job loss and would be advantageous only for India and China.