Donald Trump warns of reciprocal tax on Indian products if voted back to power

Also praises Prime Minister Modi

Detroit (USA) – Donald Trump, Former President of the USA, said that if he is voted back to power, he would impose reciprocal tax on Indian products as India charges very high taxes on the US products.

Republican presidential candidate Donald Trump added, “China levies 200% tax on our products, even Brazil taxes our products heavily; but among all major nations India taxes our products the most. We must tax India in order to make Americans wealthy again.”

Yet, he tried to mitigate the harshness of his words by praising Prime Minister Modi. Trump said that they have a special relationship with India and with Prime Minister Modi who is a great leader and has done good work.

Consequence of Trump’s proposed tax hike on India

Economists believe that Trump’s tax hike on Indian goods shall lead to a fall in India’s GDP by 0.1% by 2028. Experts are of the view that the fall in GDP shall also be caused by a decrease in international trade and India’s comparative disadvantage when competing with other nations.