India to Impose Retaliatory Tariffs on 28 US Goods From Sunday

REUTERS/Eduardo Munoz/File Photo

India will impose higher retaliatory tariffs on 28 U.S. products including almonds, apples and walnuts from Sunday, following Washington’s withdrawal of key trade privileges for New Delhi.

The new duties take effect from Sunday, a government notification said, in the latest trade row since U.S. President Donald Trump took office in 2017 vowing to act against countries with which Washington has a large trade deficit.

From June 5, President Trump scrapped trade privileges under the Generalized System of Preferences (GSP) for India, the biggest beneficiary of a scheme that allowed duty-free exports of up to $5.6 billion.

India termed that “unfortunate” and vowed to uphold its national interests.

Reuters previously reported India was preparing to levy higher tariffs ahead of Prime Minister Narendra Modi’s first meeting with Trump on the sidelines of a G20 summit in Japan on June 28 and 29.

India initially issued an order in June last year to raise import taxes as high as 120% on a slew of U.S. items, incensed by Washington’s refusal to exempt it from higher steel and aluminum tariffs.

But New Delhi repeatedly delayed raising tariffs as the two nations engaged in trade talks. Trade between them stood at about $142.1 billion in 2018.

India on Saturday amended its previous order “to implement the imposition of retaliatory duties on 28 specified goods originating in or exported from USA” while preserving the existing rate for these goods for all other countries, the government notification said.

Higher Indian tariffs on U.S. goods could impact growing political and security ties between the two nations.

U.S. Secretary of State Mike Pompeo, who is expected to visit India this month, said this week the United States was open to dialogue to resolve trade differences with India, through greater access for American companies to its markets.

India is by far the largest buyer of U.S. almonds, paying $543 million for more than half of U.S. almond exports in 2018, U.S. Department of Agriculture data shows. It is the second largest buyer of U.S. apples, taking $156 million worth in 2018.

New Delhi’s new rules in areas such as e-commerce and data localization have already angered the United States and hit companies such as, Walmart Inc, Mastercard and Visa, among others.

(Reporting by Nidhi Verma and Neha Dasgupta; Editing by Andrew Cawthorne)

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Dave Hardesty

OK, that’s fair. So we just stop sending all exports of US grain, other food stuffs, relief supplies and monies, medical supplies and, most importantly, tech support business to India. Let them get all of that from China, Russia, their surrounding neighbor countries or even the British who ruled their nation. They apparently feel they are strong enough as a nation they believe to do it without US fair trade so we should just let them do it and see how it all works out. The only thing I would miss is their Indian Food but since we can get… Read more »

Bad Penguin
Bad Penguin

“India vowed to uphold its national interests” As every countrys gov’t should however its time we stopped allowing the rest of the world to take advantage of us. After WW2 we encouraged the hemorrhaging of US jobs to the rest of the world to rebuild war shattered economies. People with solid jobs, homes and a full belly are much less likely to go to war and risk losing it all again. Rebuilding the world also gave us new markets to exploit and it was a win win situation as our economy more than replaced all of the jobs sent overseas.… Read more »

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