India to Impose Its Own Tariffs on Some Goods Imported From the U.S.

Date: Tuesday, June 18, 2019
Source: The Wall Street Journal

Move is apparent retaliation for Washington’s recent decision to withdraw a key trade privilege

NEW DELHI—India will impose higher tariffs on some goods imported from the U.S., according to Indian officials, in an apparent response to a U.S. move earlier this month to remove some special trade benefits that India had enjoyed.

The decision takes effect Sunday, just days ahead of a visit by U.S. Secretary of State Mike Pompeo to New Delhi aimed at boosting U.S.-India ties.

The U.S. and India, while dramatically broadening their overall ties in the past decade, have seen trade tensions grow over the past year after the Trump administration imposed tariffs on some steel and aluminum products last June. The Indian government responded by approving a tariff hike of as much as 120% on the import of 29 U.S. products.

Indian officials delayed implementing their tariffs for a year in hopes the U.S. would reconsider the steel and aluminum tariffs aimed at India.

Then, earlier this month, the Trump administration removed some benefits India had enjoyed under a special trade status with the U.S. That decision added tariffs of as much as 7% on Indian exports of goods such as chemicals, auto parts and tableware. In 2018, those accounted for more than 11%, or $6.3 billion, of India’s total exports of goods covered under that trade status, valued at $54.4 billion, according to the Congressional Research Service, a research agency for the U.S. Congress.

That prompted New Delhi to go ahead with the tariffs it had approved last year, affecting about $220 million in trade on products including walnuts, apples, almonds and pulses, the officials said.

“It’s not retaliatory. We waited for one year and are simply going ahead now,” one of the officials said.

 

Read from the original source.

BROWSE MORE ARTICLES

E-MAIL TO COLLEAGUE

NOTIFY ME WHEN NEW ARTICLES ARE POSTED

SOUND FAMILIAR? HAVE A SLIGHTLY DIFFERENT ISSUE? CONTACT US