Tariff hike: India proposes to raise customs duty on 30 US products
India has submitted a revised list of 30 items to WTO on which it proposes to raise customs duty by up to 50 per cent
Earlier in May, India proposed to raise duties by up to 100 per cent on 20 products
The move comes in response to duties hiked by the US on certain steel and aluminium products
NEW DELHI: India has now submitted a revised list of 30 items -- including motor cycle, certain iron and steel goods, boric acid and lentils -- to the WTO on which it proposes to raise customs duty by up to 50 per cent.
As duties hiked by the US on certain steel and aluminium products would have implications of about $241 million on India, the raise in tariffs proposed by New Delhi too would have an equal implication on America.India notified World Trade Organisation of its decision to suspend concessions to US on 30 product.
"The US would be collecting $241 million worth of duties by hiking tariffs on certain steel and aluminium items from India, we also proposed to withdraw concessions of similar amount from these 30 products imported by India from the US," a source said.
Earlier in May, India proposed to raise duties by up to 100 per cent on 20 products such as almonds, apple and specific motorcycles imported from the US.
The additional duty proposed to be hiked on these items ranges from 10 per cent to 100 per cent.
The revision is being provided to adjust the products and the tariff rates in accordance with India's rights reserved vide its notification to the Council for Trade in Goods contained in the WTO document...of May 18, 2018.
"India hereby reiterates its decision to suspend concessions or other obligations notified to the Council for Trade in Goods on May 18, 2018...of the General Agreement on Tariffs and Trade 1994 and Article 8.2 of the Agreement on Safeguards, that are substantially equivalent to the amount of trade affected by the measures imposed by the United States," according to a communication by India to WTO.
It said that the proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the US, based on the measures of the America.
"India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US," it added.
The country has proposed this move under the WTOs Agreement on Safeguards.
On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.
Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.
Earlier India had stated that these suspension will come into effect earlier than June 21, 2018, in case the US decides to continue the period of application of the measures.
It said that the duty imposed by America has affected steel exports by $198.6 million, while the same on aluminium was $42.4 million.
The other items include chickpeas, fresh apple, walnut, refined palmolein, motor cycle with engine capacity over 800 cc, diagnostic reagents and threaded nuts.
India has also dragged the US to the World Trade Organisations dispute settlement mechanism over the imposition of import duties on steel and aluminium.
India's exports of steel and aluminium products to America stood at about $1.5 billion every year. Its exports to the US in 2016-17 stood at $42.21 billion, while imports were $22.3 billion.
Aam Aadmi-India-1 hour ago
1. Depleting resources, corrupt governance and runaway materialism have created huge trade deficits between nations.
2. Trade wars are the natural fallout of this.
3. History is witness that trade wars are commonly a prelude to actual wars.
4.With aggressive leaders taking charge everywhere and with galloping weaponisation, the prospect of a small spark exploding into a global war is not too far.
5. Those nations who can send a sizeable mass of people to colonise the moon may be able to sit out the effects of a global nuclear holocaust.
ROHIT KUMAR-1 hour ago
This kind of guts...people can only expect from BJP Government..Namo Namo
Biranchi Narayan Acharya-Cuttack-1 hour ago
US shouldn''t be indulging in a trade war like that of US-China. When US is fighting against China, it need to keep India in good humour because if India & China became partner in trade war against America, America will suffer more damages.
Sachin Kumar Rath-bhubaneswar-1 hour ago
finally a very good decision. india should behave in the same way like us.
Makdxb-INDIA-1 hour ago
US policy is against developing countries. They are always doing everything in their favour and WTO support them. It is their policy that third world countries should remain poor. But India is capable to challenge them
KAMAL-1 hour ago
India has to defend its interest whatever may come Now it''s not one sided affair
Blew Whale-Underwater-1 hour ago
Trump, the biggest threat facing your nation is no more a nuclear war but a trade war with the rest of the world..get ready to fight...America on one side and the rest of the world on another...