In a fiery address to Congress, Donald Trump, the president of the United Statesreignited his battle against global tariffs, taking direct aim at India. “India charges us auto tariffs higher than 100%,” Trump declared, doubling down on his push for “reciprocal taxes” that he says will shake up the global trade system.
However, there is a problem: India’s highest car price is already 70 %, not the triple-digit find Trump cited.
Just last month, finance minister Nirmala Sitharaman reduced the duty on high-end motorcycles from 50 % to 40 %, as well as a reduction in the duty on luxury cars from 125 % to 70 %. Trump’s language suggests he’s sometimes unaware of the decline or choosing to ignore it, even though the move was seen as a move toward easing trade tensions.
Price war rages on
Trump made no fuss about the details when he announced that his bilateral tax plan would go into result on April 2 and that it would guarantee that” we will price them whatever they tax us.” He compared India to China, Brazil, Mexico, and the EU, alleging that they had been “ripping off” the US for years.
Piyush Goyal, the Commerce Minister, is then traveling to Washington for important discussions that could decide whether US-Indian business relations will end in a deadlock or find a balance.
Businesses are reacting in the interim. Investors are anticipating possible aftershocks as Trump’s previous tax increases cause volatile jumps on Wall Street.
Trump vs. the truth: Will Trump’s tax combat plan work in the long run?
Despite his bold assertions, Trump’s 100 % + figure is outdated and India’s auto tariffs have been reduced. Will his price retaliation be based on actual events or strategy rhetoric? May India react, or will it?
