India slaps retaliatory tariffs on USA goods

As trade tensions heat up between the US and India the leaders of both countries are scheduled to meet on the sidelines of the G20 summit later this month

India slaps retaliatory tariffs on USA goods

The government had on June 21, 2018 chose to impose these duties in retaliation to the United States decision of significantly hiking customs duties on certain steel and aluminium products.

India responded by saying it would raise import taxes on a slew of U.S. goods.

Closing year, India retaliated against United States tariff hikes on aluminium and metal by elevating its have import duties on loads of items.

India has imposed higher customs duties on a raft of U.S. goods effective Sunday in response to similar measures taken by Washington, the Press Trust of India reported.

The other products on which duties will be hiked include certain kind of nuts, iron and steel products, apples, pears, flat-rolled products of stainless steel, other alloy steel, tube and pipe fittings, and screws, bolts and rivets. Earlier in the month, Trump announced that the USA will be scrapping the trade privileges it had granted India under the Generalized System of Preference (GSP).

There would be no further delays in imposing the retaliatory tariffs, the Economic Times reported, quoting a government official, with the new taxes due to take effect from Sunday. The two leaders and their respective negotiators could potentially hatch a deal that would be beneficial for both countries.

The proposed action, which comes a year after the notification for the duties was first drafted in June 2018, is in response to penal duties imposed on Indian aluminium and steel at 10 per cent and 25 per cent, respectively, by Washington last year.

Pompeo, in recent remarks at a meeting of the US-India Business Council in Washington, had said "some tough topics" were likely to be on the table during his New Delhi visit, including the GSP programme.

But trade tensions between the two countries were already escalating when, last year, Trump introduced higher aluminium and steel tariffs on imports from India - when the emerging Asian economy initially announced its plans to introduce higher tariffs.

New Delhi, however, repeatedly deferred imposition of the new tariffs as it kept the door open for talks to avert a trade war.

India's exports to the U.S.in 2017-18 stood at $47.9 billion, while imports were at $26.7 billion.

Latest News