(Image source from: The Financial Express)
India will raise tariffs on 29 products from the United States, striking back against Washington's decision to enforce higher duties on Indian steel and aluminum exports amid a global trade war that has broken out as U.S. President Donald Trump seeks to combat what he comprehends as unfair terms.
The duties will take effect August 4, which mean $240 million additional revenue. The Indian government said it will raise duties on American apples, walnuts, almonds and some stainless steel products among others, merely keeping high-end motorcycles off the list. The motorbikes are a tender point with Trump, who has cited tariffs on Harley-Davidson's in his trade-related comments on India.
Earlier this week, India submitted a revised list of 30 items on which it proposes to raise customs duties by up to 50 percent to the World Trade Organization (WTO). The decision came subsequent to the U.S. rising duty on certain steel and aluminum products that had a tariff implication of $241 million for India.
"The duties will come into effect from August. We want to give time to the US to resolve these issues through discussions," said a commerce department official.
"India's position is that it can impose these tariffs but wants to discuss the contentious issues first," said an expert., regarding the high-level visit by U.S. Trade Representative's office officials succeeding week to being talk terms on the range of issues plaguing India - U.S. trade ties.
India’s latest proposed changes include 100 percent duty on American almonds and walnuts, while pulses such as chickpeas and Bengal gram will be subject to 60 percent duty and a 50 percent tax will be charged on apples.
In the notification to the WTO of its move to suspend concessions to the U.S. earlier this week, India said it anticipates around $238.09 million of duty to be accumulated through the measures.
In March, the U.S. imposed 25 percent tariff on definite steel products and 10 percent on aluminum products that will aid the U.S. to collect $241 million of the tariff.
By Sowmya Sangam
