Donald Trump has implemented a 26 percent recipe tariff against India, which has come into effect from 3 April. With this, cars to be exported in America will now have a tariff of 25 percent. This import duty will be imposed on the import of cars being prepared outside the US. Apart from this, Donald Trump is working on an idea that will cause more damage to the car industry.
In the ‘Make America Veldi Again’ program held at ‘Rose Garden’, Donald Trump also said one such thing, along with announcing 25 percent tax on automobiles and autoparts, which will work to increase the demand for the cars made in America.
Plan to give loan and tax exemption
During his speech to increase employment and business in America, Donald Trump made another announcement. He said that if people buy a car made in America only and only, then they will get the benefit of the tax exemption on the car as well as the interest of the car loan. He described it as his ‘unique idea’.
Donald Trump hopes that this will increase the sale of the same cars being made in America. America’s factories will be turned on again and there will be a large -scale manufacturing. Which will eventually work to increase employment in America.
Make in India will suffer loss
Donald Trump’s 25 percent tariff on the automobile sector will harm India somewhere. Also will push the concept of Make in India. If the government gives a discount in tax and loan interest regarding the sale of the cars made in America, then it will surely make many big companies to set up their plants there, because it will help in increasing their cell in America.
In such a situation, many car companies working in India like Maruti Suzuki, Hyundai, Honda, Volkswagen etc. will have to think about shifting a part of their production there, because these car companies have a good amount of export from India.
A major loss of this can be seen in terms of Tesla’s factory setting up in India. If this policy is operational, then Tesla will have to pay 25 percent import duty to make a car in India and sell it back to America. Whereas in America and selling a car, its cell will increase there. In such a situation, Tesla’s plant in India looks like a distant penny.