Trump announces reciprocal tax for India if brought back to power

Trump is currently a front runner in the race for the presidential candidate among the Republican Party. He recently gave an interview to the Fox business channel speaking about trade relations between India and USA. 

"So, I said, so they can sell their Indian motorbike. They actually make a bike, an Indian motorbike. They can sell that into our country with no tax, no tariff, but when you make a Harley, when you send it over there -- because they were doing no business. I said, how come you don't do business with India? The tariff is so high that nobody wants it. But what they want us to do is, they want us to go over and build a plant, and then you have no tariff," Trump said in the interview. 

His plan is to match India’s import duty with an equivalent duty from the U.S.A for exports from India. 

India’s tariff rates are close to 15% and rank amongst the top amongst the countries that are part of the Indo-Pacific Economic Framework for Prosperity (IPEF).  This has caused issues for the country in integrating into its supply chain. 

Economist Arvind Panagariya has commented on this issue before. He has stated that custom duties cannot be an instrument for generating revenue.