'India charges us a lot': Trump threatens to impose reciprocal tariff

Days ahead of coming to power, US President-elect Donald Trump has warned India of imposing retaliatory taxes as “reciprocation” for the “high tariff” imposed by New Delhi on import of certain American products.

Along with India, Trump has also threatened Brazil, accusing the countries of levying steep duties on American goods.

Reciprocal tariff are a policy where countries increase tariffs to the same level as their trading partners on similar goods.

‘In all cases, they’re taxing us’

“Reciprocal. If they tax us, we tax them the same amount. They tax us. We tax them. And they tax us. Almost in all cases, they’re taxing us, and we haven’t been taxing them,” Trump said during his first formal press conference after his win in the November 5 Presidential election and return to the White House.

In the media gathering at Mar-a-Lago resort in Palm Beach, Florida, Trump responding to a question on a potential trade agreement with China, said India and Brazil were among countries that impose high tariffs on certain US products.

‘India charges a lot’

Trump, in his statement, stressed on the need for fairness in trade and vowed to address what he described as long-standing imbalances.

“The word reciprocal is important because if somebody charges us India, we don’t have to talk about our own. If India charges us 100 per cent, do we charge them nothing for the same?” Trump said

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“You know, they send in a bicycle and we send them a bicycle. They charge us 100 and 200 (per cent). India charges a lot. Brazil charges a lot. If they want to charge us, that’s fine, but we’re going to charge them the same thing, he said.

‘Reciprocity going to be key topic for Trump administration’

Trump’s Commerce Secretary pick Howard Lutnick also pointed out that that “reciprocity” is something that is going to be a key topic for the Trump administration.

“How you treat us is how you should expect to be treated,” Lutnik said.

Earlier this month, Trump had warned members of the BRICS bloc, India being one of them, of imposing 100 per cent taxes on their exports if they backed any currency other than the US dollar.

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Also Read: Trump threatens to impose 100% tariff on BRICS nations if they pursue de-dollarisation

“We require a commitment from these Countries that they will neither create a new BRICS Currency nor back any other Currency to replace the mighty US dollar. They can go find another ‘sucker’,” Trump had said.

With inputs from agencies.