About two and a half hours before meeting PM Narendra Modi, US President Donald Trump has announced the imposition of reciprocal tax. President Trump has imposed this tax as per his election promise, under which America will now impose the same tax on imports from all those countries as these countries impose on American products or services.
Although this decision of President Trump is not about any particular country, but it is being said that it will affect Mexico, China as well as India. The reason is that India is also among the countries that impose high taxes on American products. President Trump himself has said many times that India is one of the highest taxing countries. Now it remains to be seen how much this issue is discussed in the meeting between Modi and Trump.
After signing the executive order related to the new policy, Trump announced – Whatever tariff he imposes, we will also impose the same. Neither more nor less than that. We will decide according to the tariff of each country. In most of the cases we have seen that they impose higher taxes on our products.