India’s to Launch Retaliatory Tariffs on US Imports 

India has notified the WTO a revised list of 30 US imports on which it intends to impose retaliatory tariffs. Photo: Reuters

New Delhi, India, June 21, 2018//- India on Thursday notified that its retaliatory tariff against 30 US products worth $240 million will come into effect starting 4 August to counter Trump administration’s move to unilaterally hike duties on Indian steel and aluminium exports.

While the retaliatory tariffs could have come into effect immediately, India seems to have given some more time to the US—given the upcoming negotiations for a “trade package” with the US. Assistant US trade representative (USTR) Mark Linscott is likely to visit India in the last week of June to begin the negotiations.

On Wednesday, the European Commission notified that it will start imposing 25% import duty on a range of US products from Friday, in response to US tariffs imposed on EU steel and aluminium earlier this month.

Last week, India had notified the World Trade Organization (WTO) a revised list of 30 items imported from the US, including almonds, apples, phosphoric acid and motorcycles with engine capacity more than 800 cc (including Harley-Davidson Inc.), on which it intends to impose retaliatory tariffs.

Earlier, on 18 May, India had given the WTO a list of 20 items imported from the US worth $166 million on which it was proposing to hike tariffs. However, in the revised list, India has brought down the proposed maximum additional duties from 100% (on walnuts) to 50% (on Harley-Davidson motorcycles).

India had asked the US government to exempt it from its 25% steel tariff and 10% aluminium tariff imposed by US President Donald Trump on grounds of national security. However, the US rejected India’s request. India has also dragged the US to the dispute settlement mechanism in the WTO over the matter.

Trump has often raised the issue of higher tariffs on Harley-Davidson motorcycles imposed by India and has threatened to put reciprocal taxes on Indian bikes, which he has wrongly claimed to be selling “in thousands” in the US.

Addressing the press on the sidelines of the G7 summit in Canada’s Quebec City last week, Trump specifically named India, accusing it of charging 100% tariff on some US goods. “We’re like the piggy bank that everybody is robbing,” Trump said.

livemint.com

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