President Donald Trump, on several occasions, has broached up the issue of 50% import duty levied on Harley Davidson motorcycles that are exported to India from America. On Friday, he hinted, in a tweet, that the Indian two vehicles that are not taxed when exported to America might get taxed in the time to come.
He tweets, "When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us."
When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!— Donald J. Trump (@realDonaldTrump) March 2, 2018
Without mentioning any country or the product, he apparently takes a dig at India again when he mentions that the country taxes our products at 50% while they tax the same product at zero.
What The Issue Is About: For importing a Harley Davidson motorcycle, the famous brand earlier used to pay as high as 100% tax as import duty. US President Donald Trump raked up the issue to make a point that the US company was adding too much to the Indian coffers. Interestingly, the motorcycle company's management didn't raise the issue, at least not overtly.
Was The Duty Reduced Lately: The duty was slashed to 75% from 100% earlier, followed by further reduction to 50%. Despite that, the president Trump wasn't satisfied with the move. His reasoning was that the Indian vehicles are not made to pay any duty when they are exported to the US market.
What Did Trump Say After Tax Slashed To 50%: "When they (Harley Davidson) send a motorcycle to India, as an example, they have to pay 100 per cent tax -- 100 per cent. Now, the prime minister, 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 favour. That's not a favour," he said while addressing a gathering of governors in the White House on February 26.
What Does Trump Say About Indian bikes in the US: President Donald Trump says the motorcycles that are exported to the US are free from any import duty unlike the Indian treatment wherein Harley Davidsons are made to pay 50% duty.
"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.
What Does Harley Davidson Top Management Say: The Harley Davidson management is indifferent to the entire controversy and doesn't mind paying the alleged high import duty to India. "I can accept the current duty structure. That's the requirement of the government here (India) and this is the market we are trading in. So I accept that," Harley Davidson India and China managing director (MD) Peter MacKenzie was quoted as saying in the media on Thursday.