India Takes Further Counter Measures To US Trade Tariffs

India is taking fast steps to get back at the United States on trade tariffs.

According to a revised World Trade Organization filing by the country, it has proposed enhancing of tariffs on 30 US goods that are imported into the country in retaliation to US penalties that is worth $241 million.

India has said that the proposed import tariffs on US goods would be worth the same valuation that India would face because of US tariffs on steel and aluminum that was imposed by the Trump administration in March this year.

In addition to chemical and metal products, the proposed new tariffs on US goods would include American almonds, walnuts and apples.

The country further said that higher import tariffs would be imposed on American motor bikes, which had been objected to by President Donald Trump on multiple occasions.

New Delhi file the last filing with the World Trade Organization on June 14. The latest filing is an upgradation of the initial complaint that was filed by India in May 18 this year against the tariffs on metals imposed by the US.

According to an announcement made by India last month, the proposed hike in tariffs would be implemented starting June 21.

The latest filing at the WTO by the Indian government also clarified that it is open to negotiations on the trade tariffs.

“India reserves the right to adjust the specific products for which [tariffs would apply], and its right to adjust the additional rate of duty imposed on such products,” the latest notification with the WTO said.

According to the World Trade Organization filing, exports worth about $1.2 billion of steel and aluminum is made from India to the US annually.

And according to the US Trade Representative, American goods and services worth $24 billion was sold to India in the 2016. That means that the US had a trade deficit of about $30.8 billion with India.

Trade tariffs has been the source of a dramatic heightening of tensions between the US and a number of its biggest and traditional trading partners in recent weeks.

Following the expiry of the respite from the import tariffs on steel and aluminum by the Rump administration earlier this month, retaliatory trade tariff measures have been announced by three of America’s biggest trade partners — the European Union, Mexico and Canada.

Additionally, the US has been accused by China of firing the first shot in the trade tensions an tariff war in relation to the 24% tariff imposed by the Trump administration in Chinese products worth $50 billion that is exported into America. Beijing said it would respond in kind to the US tariffs.

That statement has raised concerns of the trade war between the two largest economies of the world intensifying and potentially impacting the global economy.

(Adapted from Momey.CNN.com)

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Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability, Uncategorized

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