The new US administration, led by President Donald Trump, wants the Indian government to lower the hundred per cent tariff New Delhi imposes on Harley Davidson motorcycles. A White House official mentioned the US government's expectation in a letter to the Wall Street Journal.
"If India agrees to lower its tariffs on Harley Davidson motorcycles, Indian consumers will buy more Harleys and save less while Harley will sell more Harleys and invest more," Peter Navarro, Director of White House National Trade Council, said in the letter.
Navarro also suggested that "adjustments" were needed in US' trade ties with other countries to make them "fair and reciprocal".
"Truly fair and reciprocal trade between the US and its trading partners, rather than the perpetual turn of the screw we receive now, will lead to a thousand similar kinds of adjustments as our bilateral trade deficits fall and savings and investment patterns adjust," Navarro added in the letter.
In his first speech to the Congress, US president Donald Trump had made a veiled reference to India when he pointed at high export tariffs faced by US motorcycle major Harley-Davidson.
"American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rates on our companies so they can compete and thrive anywhere and with anyone," Trump had said in his speech.
While speaking about his meeting with the workers and officials of Harley-Davidson, Trump had said they weren't even complaining when asked about their international sales as they had been so mistreated for so long that they have become used to it.
"They said that in the case of 'another' country, they tax their motorcycles at 100 per cent. They weren't asking for a change but I am," Trump had said to a thunderous applause from the members of US Congress.
In India, tariffs on motorcycles with engines bigger than 800cc is 100 per cent, according to the International Trade Centre. The figure is unmatched when one looks at Harley-Davidson's other international markets.