US reeling under 800 billion USD tax deficit; Trump to introduce reciprocal taxes
Washington, Mar 2 (IBNS): US President Donald Trump announced on Friday that he will introduce reciprocal taxes to bridge the 800 billion USD trade deficit that is biting America.
Reciprocal taxes will allow the US to charge the exact taxes that another country charges the North American nation.
"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!" Trump tweeted.
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
On Monday, the US President took a jibe at India over trade pacts and said his country is suffering loss due to the import duty imposed on Harley Davidson bike by the Narendra Modi government.
Referring to Modi, Trump said: "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 added.
"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" the US President was quoted by NDTV.
Apart from India, Trump at a press conference on Monday, attacked several countries like Canada, Mexico over the trade pacts.
He has said the US is also suffering losses from Mexico.
Trump has blamed all his previous Presidents including his immediate predecessor Barack Obama over the trade pacts which hurts the US.
Meanwhile, Canada has reacted strongly to Trump's announcement of imposition of tariffs on steel and aluminium imported from any other country.
Trump on Thursday announced an imposition of 25 percent and 10 percent tariffs on imported steel and aluminium respectively.
Canadian Foreign Affairs Minister Chrystia Freeland called the move as "absolutely unacceptable".
Freeland said "responsive measures" will be taken if Canada is not exempted at the last minute.
She said: "It is entirely inappropriate to view any trade with Canada as a national security threat to the United States. We will always stand up for Canadian workers and Canadianbusinesses. Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers.”
"It is entirely inappropriate to view any trade with Canada as a national security threat to the United States. We will always stand up for Canadian workers and Canadian businesses" Freeland added.
Trump said he will formally impose the tariffs in the next week.
The tariffs plan is yet to receive the signature of the US President.
Image: Facebook
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