US President Donald Trump accused India of being a "high rate" country on Saturday (local time) threatening "reciprocal tax" to match the heavy duty imposed on goods imported from the United States by New Delhi.

Speaking on the last day of the four-day CPAC in Maryland, the President of the United States stated that "India is a high price nation. They charge a 100 percent tariff when we send a motorcycle to India. We charge nothing when India sends us a motorcycle. I want a mutual tax, I want a tax, at least. 

A reciprocal duty is a form of tariff applied to imports from other countries which impose a similar duty on goods exported by the United States.We are unable to allow a country to charge 100 %, and we receive nothing for the exact same product. They're not respecting us for one thing. Trump said, they think we're silly. "Let me say something to you, though. Our country is respected by the world. They respect us," added the Chairman.

In the framework of a campaign called for "Make in India," Indian Prime Minister Narendra Modi has many times called for foreign investment in the country to transform India into a production center for young people. However, as part of his Make America Great Again campaign, President Trump has urged U.S. manufacturing companies to return home. 

Washington on February 6 was considering withdrawing its policy of zero tariffs on Indian exports to the USA in a major disciplinary action against Indian trade and investment policies. As a major beneficiary of a regime that has been in force since the 1970s, India's Generalized System of Preferences (GSP) has received USD 5.6 billion in tariff concessions in respect of exports to the USA. The move towards the retirement of the GSP marks a draconian measure taken by the US government led by Trump to reduce the US deficit in large economies.