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economy | IST

India to impose retaliatory tariffs on 29 US goods worth $235 million

Mini

India on Friday has decided to impose retaliatory tariffs on 29 US products worth $235 million after Donald Trump administration on March 23, 2018, applied a 25 percent tariff to all US steel imports and a 10 percent tariff to all US aluminium imports.

India on Friday has decided to impose retaliatory tariffs on 29 US products worth $235 million after Donald Trump administration on March 23, 2018, applied a 25 percent tariff to all US steel imports and a 10 percent tariff to all US aluminium imports, citing an investigation that showed national security concerns.
Products on which Indian retaliatory tariffs will be imposed are almonds, apples, walnuts, chickpeas and some stainless steel products. Also, India will apply a 10 percent tariff on aluminium and a 25 percent tariff on steel.
The Narendra Modi government has extended its deadline to impose retaliatory import duties on 29 products from the US eight times till June 16 due to Lok Sabha elections.
Last month, Trump has terminated India's designation as a beneficiary developing nation under the key GSP trade programme after determining that it has not assured the US that it will provide "equitable and reasonable access to its markets."
The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
On March 4, Trump announced that the US intends to terminate India's designations as a beneficiary developing country under the GSP programme. The 60-day notice period ended on May 3.
Under the GSP programme, nearly 2,000 products including auto components and textile materials can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress.
India was the largest beneficiary of the programme in 2017 with $5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with $1.7 billion in covered imports, according to a Congressional Research Service report issued in January.